Since the first initial lockdown of COVID 19 began the car market rose to a point where it seemed like nobody had a car. When lockdown was over business was booming. Cars were flying off the lots at the speed of light. With the absolute wildfire going on with the car market, it was only a matter of time before manufacturers couldn’t keep up with the demand. It wasn’t that the manufacturers were just too slow on producing new vehicles, it was the fact that manufacturers couldn’t supply the parts the make new vehicles.
The high rise of the market kept going on. Through the end of 2020 the market was slowly on the rise, 2021 was the same but the market was at one of its highest points ever. 2022 kept that streak going with the market holding the high value going into 2023. Then in 2023 the market started to shift again, the market started off 2023 the same as it did in 2021, and 2022. As the months went by the market was slowly falling until around about August 2023. Once it hit August the market started to fall tremendously, especially on used cars, leading to Kelly Blue Book values falling on used cars, and the same thing on National Automotive Dealers Association. The affect that the used car market had on dealers was grim in some cases. With dealers losing thousands if not tens of thousands of dollars on their used car inventory.
After the market fell dealers and manufacturers were scrambling to find a way to recover from the crash. It had seemed that the best way to recover for the dealers was to go back to the old way of business, which was going lower on trade values instead of higher, and being more observant on used cars. While 2024 has started and is almost in April, the market is slowly recovering back to its former glory before the COVID 19 pandemic. While the market is being fixed, it doesn’t help that bank interest rates are through the roof, but we’ll have to wait and see, to see what will happen throughout the rest of the year with the economy and car market.