Car prices have been surging for over a year. The pandemic disrupted supply chains and caused shortages in critical auto components like semiconductors, resulting in a lack of new vehicles hitting the lots. The lack of new cars has created an absolute whirl in the cheaper used car market.
What does this mean for customers? The car market continuously loses vehicles to a combination of life cycles and accidents. The industry referred to as “car scrappage,” combined with decreased auto production, saw the total number of vehicles in the U.S. declined between the second quarter of 2020 and the first quarter of 2021.
Used car prices are up nearly 40% during the pandemic and are still rising. Diminished supply isn’t the only factor driving prices up. Consumer demand is outpacing the supply. There has been a significant increase on the demand side. Some of that can be attributed to auto loan interest rates hitting rock bottom during the pandemic. It will likely take well into 2022 for the used car market to return to normal.
Whether you’re in the market for a new or used vehicle, ESP Data Solutions can help. Running a Recall Report is a valuable first step that will save you time and money. This information can help show if the vehicle has hidden issues if you’re buying a used car. ESP Data Solutions Recall Report contains important information about the vehicle. It can show when the vehicle was recalled, what it was recalled for, and whether repairs were done.
Why choose ESP Data Solutions? We’ve been in business for 25 years, over 5,000 OEM vehicle and trailer manufacturers covered.