Vehicle Sales Drop As Car Prices Inflate

If you're looking to buy a vehicle, you may be one of a many who are realizing that the prices are going up, even on used vehicles. It is rare to see non-collector cars go up in value, but this is what some are seeing across the Country as we start to transfer back into normal life.

This is a situation that has never been seen before. It is said that when you leave a car dealerships lot with your ride, it loses value, but now auto dealers are buying used cars for higher prices than they h have ever paid and selling them for new vehicle prices. Dealerships started buying used cars because manufactures had a "semi conductor shortage" which slowed the production of new cars being made and caused dealers to jack their prices up on their used cars as they try to keep up with the demand. The price increase on used cars and the shortages of new vehicles are keeping buyers away.

As sales continue to drop in July, this will make it the third month in a row where sales have declined for dealers.

Based on some research, you can see that imported vehicle sales have fell 13.1% from June while domestic vehicle sales also dropped in sale by 8.7%, truck sales shrank down 8% and overall auto sales dropped 11.2%. These stats show that the car buying market has been dragged below their pre-pandemic level.

There is no estimate on when this will change, but if you follow some auto action you can see that prices are starting to deflate, so we should be seeing prices at the dealership level off here soon as well, at least one can hope so.

Car prices are not the only thing skyrocketing right now, the price of Lumber has went up 300% as people try to update their homes due to staying at home. Gas is up 22% because people are hitting the roads more since there is no longer COVID restrictions.