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Used Car Prices Have Skyrocketed By 41 Percent For Car Dealerships in Riverside

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Used car prices are on the rise. The U.S. Bureau of Labor Statistics reports the consumer price index for used cars has increased by 41.7% since last June.

We spoke with the Internet Sales Professional of the Toyota Of Riverside Team, Cedric Jackson.

Jackson says his team is noticing the increase in pricing because there is a shortage of new cars. He says manufacturers don’t have enough semiconductors and microchips to install in new vehicles, so the vehicles aren’t being distributed to Car Dealerships in Riverside, CA.

He also explains that most major car manufacturers use ready manufacturing practices, meaning car manufacturers have partnerships with other companies that produce specific parts like headlights, taillights, safety systems, etc.;

Jackson explains that those companies may be located in countries with strict Covid-19 lockdown policies. As a result, car manufacturers are at the mercy of their ready manufacturing partners, thus creating higher demand for new vehicles.

Jackson says: this shortage of new cars creates more demand for used cars as well. He says the average person can sell their current vehicle for more money with more miles right now than they could have just a few months ago.

He said a few more factors are increasing the value and creating more demand for vehicles in addition to the microchip shortage and ready manufacturing.

Jackson also pointed to the announcement that Toyota North America is reported to cut production of vehicles for the North American market by up to 40%, affecting the vehicle shortage.

He states vehicle rental agencies are buying out mass amounts of used cars to have inventory available to rent now that the travel industry is returning.

And lastly, Jackson says that some people have decided to avoid public transportation and are now buying vehicles instead of sharing public space on trains and buses.

Cedric The Car Guy | Cars For Sale Riverside, CA
Cedric The Car Guy | Cars For Sale Riverside, CA

7888 Indiana Ave

United States

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