The Used Car Market Sees the End of its Previous Boom
The demand for used cars may be reducing worldwide post pandemic
Even a year back, the used car business was witnessing a global boom, driven by the coronavirus pandemic and a semiconductor shortage that slowed production of new vehicles
Prices for used cars also went up considerably owing to demand in this period
Yet, used cars are now witnessing slowing demand, particularly in markets like the USA, where recession fears have given rise to fewer sales figures
Automobile dealers are subsequently facing the impact of falling sales and prices alike
Used car values went down by 14% last year and could further plunge by 4% in 2023 as per estimates
CarMax and Carvana are among two leading industry giants which have faced major hurdles recently, although they remain optimistic about a turnaround in the near future