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Thursday, 10 September 2020

Covid-19 pushes the US to a used car sales boom

Is covid-19 better for used cars than new ones? Sales data in the US seem to indicate so: The US is experiencing a nationwide used car sales boom, as the demand for new cars plummets and people tighten their purse strings during the pandemic, according to CNBC’s After Hours (watch, runtime: 14:10). Sales of used cars increased 17% from pre-covid levels in June while the average listing price of a used car increased USD 700 from June to July.

Used car delivery, anyone? Companies like Vroom who offer contactless used car sales have seen their inventories drop amid the increase of demand, said Vroom CEO Paul Hennesy.

Health and safety concerns are also attributed to the boom, with people choosing to buy cars to avoid the virus-spreading mass transit system. In the hard hit New York City used car dealerships saw customer walk-ins rise 38% from 2019, with the city unsure whether its infrastructure can handle the increase in vehicles.

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