Used car prices have been reaching new record highs with each passing month, with the average used vehicle listing recently reaching $25k for the first time in history. The semiconductor chip shortage has driven this surge, leading to record low vehicle inventories and record-high prices. Ernie Garcia, Carvana CEO, says that used car prices will remain high until the shortage of semiconductor chips is addressed.
It is worth noting that the used vehicle boom has been very profitable for retailers such as Carvana. They raked $45million in net income in Q2 2021 with a 96 % increase in vehicles sold. Carvana sold more than 100,000 vehicles in the quarter, a first in its eight-year history. Used vehicle inventory increased in June, leading experts to believe that prices could soon follow. Ford executives believe the chip shortage will continue through June 2022, despite an increase in supply over recent weeks.
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