Its not uncommon these days to see virtually empty car lots. This is as a result of auto manufacturing plants closing last spring, at the request of the government to combat Covid-19. Almost a year later, the auto industry is still reeling from the closures in both the new and used car markets. Thus, this has led to a historic price surge in both the new and used car markets. Its purely a matter of supply and demand.
Moreover, throughout the pandemic, the government doled out incentives to stimulate the economy to business owners, gig workers, parents with young kids and taxpayers, in order to steer clear of another Great Recession. The fact of the matter is that there is a segment of the population that was not employed or owned businesses in the hardest hit segments of the economy: travel, hospitality and the restaurant industry. In fact, there is a segment of society, who hasn’t missed a beat, in terms of their income, with the ability to work from home all while taking care of their kids. With this being the case, according to J.D. Power Insights, the sales of new vehicles in the U.S. priced above $80,000 more than doubled in the first five month of year, when compared to the same period in 2019.