Mary: I’m Mary Walden, with economist MW, welcoming you to the economic perspective. Today’s program looks at used car sales. Mike, next to buying a home, the largest purchase most households will make is purchasing a vehicle. I understand one part of this market, the sale of used cars, is now booming. Why?
Mike: Summary Answer
- Two big factors
- Many people have used their federal stimulus checks to make big-ticket purchases, including vehicles
- Also, during the height of the economic shutdown, new vehicle factories were closed, so dealers had trouble accessing new vehicles – so shoppers often were forced to look at used vehicles
- Plus, the benefit from buying a used vehicle may increase in the future
- Supply from struggling rental car companies will increase, plus return leased vehicles
- More supply means lower prices for buyers
- I’m MW
Mary: And I’m Mary Walden for the Economic Perspective, an NC State Extension program from the Department of Agricultural and Resource Economics.