US used car prices fall for first time in 7 months
A lack of assembly materials has led to shortages on a U.S. auto production line in the wake of the COVID-19 pandemic and its global economic fallout.
Buying a car, whether new or used, has been a complex issue in the months following the global spread of COVID-19, and the issue has set off a domino effect across virtually every industry. The lack of supply, such as and , is one of the main pillars of this problem, which has pushed up the prices of new and used cars since March 2021. However, for the first time in the second half of the year managed to show a decrease in car prices in the United States.
According to Fox Business, the US Department of Labor reported that US used car prices fell 1.4% in the last month of August., which is an unprecedented figure in line with inflation data presented in previous months.
The level of volatility in the production of new cars has caused a significant increase in the cost of used cars in the US and the US. In the fact that many years ago such a hidden dynamics of supply and demand was not observed, it should also be noted that although prices have decreased, they are still much higher than in September 2019 (in the pre-pandemic period).
Another factor that may have contributed to rising US car prices was the distribution of stimulus checks by the US government to help the country's economy recover. which put more money in the pockets of most of the nation. In addition, Fox News experts point out that the increase in traffic between the centers of large cities with suburbs and the increase in general traffic could be other reasons why used car dealers increased the prices of their fleet. As is the case with several new vehicles currently available.
Finally, it is important to note that, according to a survey conducted by Car prices are expected to rise 5.2% by this time next year, according to the New York Federal Reserve.
It is important to note that the prices described in this text are in US dollars.
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