{"id":48,"date":"2022-07-27T16:44:43","date_gmt":"2022-07-27T16:44:43","guid":{"rendered":"https:\/\/www.autobuyersmarket.com\/news\/?p=48"},"modified":"2025-05-05T10:24:31","modified_gmt":"2025-05-05T10:24:31","slug":"prices-of-used-cars-trucks-up-43-vehicle-shortages-keeping-repossessors-super-busy","status":"publish","type":"post","link":"https:\/\/www.autobuyersmarket.com\/news\/2022\/07\/27\/prices-of-used-cars-trucks-up-43-vehicle-shortages-keeping-repossessors-super-busy\/","title":{"rendered":"Prices of Used Cars Up 43%; Shortages Keeping Repossessors \u201cSuper, Super Busy\u201d"},"content":{"rendered":"\n
\"Repossessors\"
Mark Lacek, a repo man based in Florida, noted that he has been ‘super, super busy’ a<\/em>s of late, and expects the trend to not only continue, but increase in frequency; this is being driven by advances in vehicle-mounted license plate reader technology, which can alert users while they\u2019re driving when a match is made on a car listed in a repossession database. File photo: Virrage Images, Shutter Stock, licensed.<\/figcaption><\/figure>\n\n\n\n

WASHINGTON, D.C. – Despite COVID-19 being far less of a threat these days due to the proliferation of individuals who are either fully vaccinated or who have obtained a degree of natural immunity<\/a> from prior infections of the virus \u2013 or both \u2013 the lasting effects of the pandemic are still being felt throughout the world, sometimes in the most unexpected of ways.<\/p>\n\n\n\n

In this instance, disruptions in supply chains brought about by the pandemic have resulted in a global shortage of computer chips, and thusly a shortage of the equipment and devices that depend upon them. Among the many businesses experiencing this issue is the automotive industry; Dmitriy Shamilov, senior sales manager at Envision Honda in Milpitas, California<\/a>, said that the current situation is unprecedented.<\/p>\n\n\n\n

In over 22 years in this business, I\u2019ve never seen anything like this,\u201d he said. \u201cWe usually have more than 700 new cars on this lot, and now I have less than 10.\u201d<\/em><\/p><\/blockquote>\n\n\n\n

With computer chips currently scarce, the country\u2019s inventory of new motor vehicles has plummeted and prices have increased, which has subsequently driven greatly increased demand \u2013 and once again, prices \u2013 for used vehicles<\/a>.<\/p>\n\n\n\n

Federal surveys indicate that in the period between August 2020 and June 2022, prices of used cars and trucks jumped a whopping 43 percent; during the same period of time, prices of brand new vehicles increased 17 percent.<\/p>\n\n\n\n

Much like the housing market in the U.S. which grew increasingly competitive and cutthroat during the pandemic, so too has the used vehicle industry; reports indicate that car dealerships are now far more likely to initiate repossession proceedings<\/a> \u2013 often doing so much faster than before the pandemic \u2013 over late payments, knowing they can quickly turn around and re-sell the vehicle for a quick and tidy profit.<\/p>\n\n\n\n

Mark Lacek, a repo man based in Florida, noted that he has been \u201csuper, super busy\u201d <\/em>as of late, and expects the trend to not only continue, but increase in frequency; this is being driven by advances in vehicle-mounted license plate reader technology, which can alert users while they\u2019re driving when a match is made on a car listed in a repossession database.<\/p>\n\n\n\n

Other factors driving difficulties in the automobile market is inflation \u2013 which has currently hit levels not seen in the U.S. for 40 years \u2013 and stagnant wage growth. With many Americans struggling to make ends meet these days, consumer car loan delinquencies are on the rise; reports indicate that auto loans over 60 days late were up 30 percent year-over-year from May 2021.<\/p>\n\n\n\n

But even with the rise in repossessions, many dealers simply can\u2019t get a hold of enough used inventory; car leasing companies are holding onto stock longer than they did prior to the pandemic, and more of their customers are purchasing the vehicles they lease due to the scarcity and expense on the open market.<\/p>\n\n\n\n

While things are tough now, Auto-industry analyst Ivan Drury noted that \u2013 given time \u2013 things will eventually right themselves, and people will once again have their pick of the ideal car for a fair price.<\/p>\n\n\n\n

You\u2019ve got a least a year if not longer before you see anything like a market that looks even close to the norm,\u201d he said.<\/em><\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"

WASHINGTON, D.C. – Despite COVID-19 being far less of a threat these days due to the proliferation of individuals who are either fully vaccinated or who have obtained a degree of natural immunity from prior infections of the virus \u2013 or both \u2013 the lasting effects of the pandemic are still being felt throughout the […]<\/p>\n","protected":false},"author":4,"featured_media":51,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[3],"tags":[],"class_list":["post-48","post","type-post","status-publish","format-standard","has-post-thumbnail","category-market-updates","entry"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\n\t\t\n