The Economic Perspective: “Used Car Sales”

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.