August 10, 2021 by Elaine Barrett
Have you been looking for a quality used car recently? The chances are that if you have been trying to purchase a used vehicle, you’ve noticed that prices have been abnormally high. And no, it’s all not in your head. Shortages in new cars being manufactured have caused more people planning to buy new to turn to used cars. The results are that used car inventories have been reduced. However, Car Credit is busy tracking down new sources for quality used cars.
As we’ve become accustomed to hearing over the last year and a half, the cause of the used car shortage begins with effects from the pandemic. Outbreaks and shutdowns brought on disruptions to vehicle manufacturing and international shipping and trade. There are two main buyers of new cars, individual consumers and car rental companies. Both have turned to used cars to fill their needs recently, depleting inventories.
Rental car companies are also a primary source of quality used vehicles. The business model for rental car companies is to purchase new cars, rent them out for 1-2 years, and then pass those on to used car dealerships to be resold. That means a steady stream of reliable and low mileage cars entering the used car market. However, rental car companies have changed their behavior during the pandemic. To cope with a shortage of new cars, these used car companies have begun to hold on to their cars for longer and purchase used cars to fill their own needs.
It’s difficult to say when the shortage will end completely, but we’re already beginning to increase our inventory of reliable used cars at Car Credit. We have been persistently working to find new sources of good used cars, and the result has been a gradual increase in our stock. And, as always, we are offering our cars at the lowest possible price possible in this market. As the summer travel season comes to an end, car rental companies may release more of their vehicles into the used market, which will help increase used car inventories. Additionally, the manufacturing of new cars is likely to pick pack up over the next year, reducing the excessive demand for used cars.
If you have any questions about Car Credit’s quality used cars, our excellent low credit dealer financing process, or any other question, please don’t hesitate to contact us. We are always happy to talk with you!