Over the last several months, used car prices have gone through the roof: Between May and June, the average price of a used vehicle increased by 10.5% — that’s the fastest increase on record (which the Bureau of Labor Statistics began documenting in 1953). Several factors play into the dramatic increase that’s making selling used cars at your dealership difficult:
The global semiconductor shortage has put a massive strain on new car manufacturing, causing consumers to opt for used cars instead. Personal vehicles have become more appealing throughout the pandemic. Rental car companies sold off much of their fleet last year, and are now repurchasing in droves.
Inflation, worker and material shortages, and other factors have caused goods and services across many industries to rise in price: In just the last year, the price of lumber has increased by 377%, gas prices have risen considerably this year, and furniture orders have been met with months and months of delays and backorders. So while the retail automotive industry isn’t the only one suffering supply disparities, it’s no less frustrating for your dealership.
But there are ways to continue to drive revenue at your dealership, and a lot of it