Extreme Imbalance. 2021 Resale Market

Extreme Imbalance.
2021 Resale Market

 
November 11, 2021
The highs in the used-vehicle market over the past year have been undeniably record breaking.
the most “extreme imbalance” of supply and demand
“we’ll ever see", according to Jonathan Smoke,
chief economist at Cox Automotive
AFTER COVID LOCKDOWNS ENDED
Demand rose due to various reasons, including:
  • the recovering economy
  • federal stimulus measures
  • favorable credit conditions 
Supply dropped due to a 'perfect storm' of issues, including:
  • factories struggled to resume production after unprecedented months of shutdown
  • the semiconductor chip shortage.
“We are projecting we’ll have limited inventory going forward for the next several years, and it’s going to help prices stay definitely above COVID-era levels,” said Alex Yurchenko at Black Book US.
“We had a number of cars on the used market
hitting original MSRP and above."

Alex Yurchenko, Black Book
Full Article
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