Used car prices remain high until carmakers solve production problems.

If you are expecting the fall in used car prices, and reading recent indications as a sign that the fall in prices has already begun, one of the largest sellers of used cars in the United States says it should not be excited. .

According to the CEO of Carvana, the increase in the prices of used cars will not slow down until producers can start producing cars at pre-pandemic rates.

“[Used car sales] the volume is fairly constant with 2019, it hasn’t changed that much – what’s materially different is just that there are so many fewer new cars being manufactured and that is pushing up prices. “Ernie Garcia, general manager of Carvana, said in CNBC Box’s ‘Squawk’ on Friday.” I thought until the supply chains to the [original equipment manufacturers] you understand that there is likely to be a lasting impact. ”

Car manufacturers have struggled to maintain production with the shortage of semiconductor chips.

Ford, which had to cut its production of North American vehicles in July and August due to shortages, said its second quarter said supplies improved, but that it lost production of about 700,000 vehicles during the quarter.

General Motors said the shortage of chips will cut its profits from $ 1.5 billion to $ 2 billion and that it has boosted some of its North American assembly plants due to shortages.

Nissan said in May that it plans to make half a million fewer vehicles this year, while BMW recently warned that it expects the shortage to infiltrate in 2021.

In total, the chip shortage is estimated to cost carmakers $ 110 billion in lost revenue this year, according to a May report from consulting firm AlixPartners.

Used car companies are seeing soaring revenues

Customers inspect a Fiat Chrysler Automobiles NC Dodge Grand Caravan minivan at a Carvana Co. location. in Westminster, California, United States, on Thursday, May 28, 2020.

Patrick T. Fallon | Bloomberg | Getty Images

Debates over when used car prices will rise

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