*Its not uncommon these days to see virtually empty car lots. This is mainly as a result of auto manufacturing plants closing last spring, at the request of the government to combat Covid-19. Almost a year later, the auto industry is still reeling from the closures in both the new and used car markets.
Thus, this has led to a historic price surge in both the new and used car markets. In some cases, dealers have applied a market adjustment to some vehicles to capitalize upon the inventory imbalance, which pushes prices even higher.
Moreover, throughout the pandemic, the government has doled out billions in financial incentives to stimulate the economy to business owners, gig workers, parents with kids under 18 years of age and taxpayers, in order to steer clear of another Great Recession.
While there is a segment of the population that was not affected by the hardest hit areas of the economy: travel, hospitality and the restaurant industry, there is a segment of society, who hasn’t missed a beat, in terms of their income, with the ability to work from home all while taking care of their kids.
With this being the case, according to J.D. Power Insights, the sales of new vehicles in the U.S. priced above $80,000 more than doubled in the first five month of 2021, when compared to the same period in 2019 (during a normal year without a pandemic).
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Moreover, the average transaction price of a new vehicle has risen to a record breaking $40,768, while used car prices have surged to a record high of $22,568. And new vehicle incentives, in many cases have literally slid backwards, when compared to both 2020 and 2019.
For consumers, who might be in need of a vehicle, here are several ways to keeping money in the bank. To continue reading, click here.
About JeffCars.com And Auto Trends with JeffCars.com
Jeff Fortson is the host and executive producer of Auto Trends with JeffCars.com, the only multicultural syndicated automotive program airing throughout the U.S. and Canada. The 30-minute weekly show, which is in its fifth season, airs on SiriusXM 141 and a number of FM radio dials. The program consists of in-depth one-on-one conversations with many of today’s industry pioneers and influencers.
For upcoming shows, car reviews, car-buying tips, recall updates and a car payment calculator, visit his car-buying educational guide JeffCars.com. Follow him on twitter @ JeffCars.