Low supply and high demand are causing used car prices to soar unprecedentedly.
SEATTLE – Low supply and high demand are causing used car prices to skyrocket at unprecedented levels as the continuing threat of COVID-19 continues to impact small businesses.
“We’ve been in business for over four years, and it’s a family business,” said Marianna Baghdasaryan, who helps run J&A Auto Sales at Bellevue. “We try to supply a wide variety of cars, from your more luxurious Mercedes and Porsches to the regular Toyota Camry.”
J&A Auto Sales opened their business early in the pandemic.
“We had to close for two to three months. It was difficult and then everything seemed to change from week to week, “Baghdasaryan said.
In addition to learning to navigate public health mandates, Baghdasaryan said it was increasingly difficult to get cars for sale from their lot.
“The prices for small dealers to get cars are higher than ever, and I think they are probably increasing on a weekly basis,” Baghdasaryan explained. “This is because the problem of supply and demand is so huge right now and there aren’t many used cars anymore because the supply of new cars has sort of shrunk. sort maintained due to the pandemic. “
KING 5 News also spoke with Joe Reynolds, owner of Go Auto Brokers. In addition to running his own business, Reynolds studies the ever-changing automotive industry.
Joe Reynolds, owner of Go Auto Brokers studies the ever-changing auto industry and said it was easy to sell a car before.
“I could just go to a wholesale auction and it would be there and I could get it reasonably priced if I just put in a little bit of effort,” Reynolds said.
Almost two years after the start of the pandemic, Reynolds said that was no longer the case.
“Now the game has really changed and the new dealers, like some of the giant online dealers, are just willing to pay crazy money,” Reynolds said.
Online dealerships like Vroom and Carvana also buy cars, limiting options for dealers like Go Auto Sales and J&A Auto Sales.
As to the duration of this supply and demand problem, the answer is not clear.
“I thought we would be back to normal now. All the data that I hear and I hear the experts talking, they say it might take another year or more, but I really don’t know, “Reynolds said.
“I think in this market everyone is just trying to find the right inventory to even keep everything afloat,” Baghdasaryan said. “It’s the positive outlook on things that dictates how well a person will get out of, you know, this pandemic. We’re not going anywhere. “