Two years ago, anyone could sell a used car. The pandemic and a global semiconductor shortage in 2021 slowed production of new vehicles. With low supply and high demand, used-car prices spiked nationally, nearly 43% on average, between February 2020 and September 2022, according to a J.P. Morgan report . At Daily Deals Auto Sales, a small used-car dealership near Green Lake along Aurora Avenue North, owner George Riad said the market was so hot cars sold themselves. “We would purchase a vehicle, literally just wash it, not even detail it, post it online and boom. It’s sold within two days,” he said. Those days have come to a screeching halt. Last month, Riad said he sold only nine cars, his worst month in five years. Amid fears of a recession and rising interest rates, the used-car industry is starting to tighten. Two Seattle-area dealerships said they’ve seen sales lag in recent months and CarMax and Carvana, both used-car businesses, have reported losses. According to the report, used-car prices have peaked and are expected to decline by 10% to 20% nationally this year. New car prices will largely hold steady and should only decline by 2.5-3%. Advertising This winter […]
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