By Isaiah Steinberg, Review-Journal of Las Vegas
It’s not for want of trying on the part of Pete Kelly, used car manager at Jim Marsh Kia and Jim Marsh Chrysler Jeep in Las Vegas, who hasn’t purchased a used car at auction for less than $20,000 in more than two years.
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He claimed that since the epidemic, there are fewer possibilities for secondhand cars under $20,000 and that he must contend with national chains that are prepared to take on lower profit margins.
After a brief panic in March brought on by tariffs, demand for cars has decreased nationwide in subsequent months due to high prices and loan rates.
According to an iSeeCars report, the average price of used cars in the United States that are three years old has risen 40.9 percent since 2019, despite the brief decline in demand.
According to Nicholas Irwin, an associate professor of economics at UNLV, the epidemic is mostly to blame for that.
Due to rental firms selling off some of their inventory to stay afloat and the general increase in demand for new cars around that time, there were a lot of used cars being sold to a lot of purchasers, Irwin said.
According to Irwin, inflation made things worse for those who bought new cars after the epidemic by driving up prices even more.
According to recent Edmunds data, the typical new car in the United States costs approximately $48,000, whereas the average used car after three years costs approximately $31,000. Compared to 2019, the average 3-year-old automobile cost around $21,000.
According to Irwin, the 25 percent tax imposed by President Donald Trump on imported automobiles and auto parts caused many Americans to worry that they might not be able to purchase a new car, which increased demand for used cars.
Chris Hemmersmeier, president and CEO of Jerry Seiner dealerships, stated, “I don’t think the percentage of cars under $20,000 will go up as inflation continues to rise.” In the next years, it might reach $23,000 or $25,000. I believe the new benchmark will keep rising.
According to Hemmersmeier and Kelly, buyers should seize used automobile offers while they are still available.
“I’m asking $15,000 for a 2018 Volkswagen Passat that’s currently outside my office,” Kelly stated. Most likely, that car won’t arrive on Friday.
Used automobile costs have significantly increased nationwide due to a number of causes, including COVID-era supply shortages, inflation, tariffs, and high loan rates.
The stock and quality of the remaining used cars under $20,000 will decline as a result of the hike, according to Irwin.
According to Irwin, this is just one more expense that is burdening and straining our working-class families.
2025 Review-Journal of Las Vegas. Go to the reviewjournal.com website. Tribune Content Agency, LLC is the distributor.
