Even used cars are making potential buyers think twice, now

InflationMoney MattersSales
Written By Jennifer Joslyn

Used cars are officially unaffordable for most Americans. Interest rate bumps have forced a number of potential car shoppers to reconsider buying, even what has previously been the most ‘reasonable’ option. CarMax, the country’s largest used car seller, has reported a 54% drop in earnings in the past quarter. Rival Caravan also recorded a top of 23%.

Over the past two years, car prices have ballooned as chip and parts shortages and strong consumer demand have had cars flying off the lots. Statistically, about 40% of American households purchase a car every year. But the price tag on a used vehicle is still up 48% from August of 2019.

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Jennifer Joslyn
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