1- stimulus money 2- new car shortage due to decrease in production and chip shortage 3- increase in road trips due to COVID 4-people moving away from cities

New car shortage due to Covid lockdown has forced lots of the major franchise dealers to start buying way more used cars than they normally would.. I’m a dealer in Florida and I’m seeing trucks sell for $5000 to $10,000 more than what I paid back in October in November of 2020. I’m having a very hard time buying any inventory right now. As a small independent dealer I have always relied on my low prices to set me apart from the big guys. I could always beat them on price due to low overhead and now they are holding all the keys. Lots of small guys like me will not survive through this madness.

Some factors I think for high prices of used cars is due to low new car supply, people not wanting to take public transportation or moving out of cities, so they need cars, and a lot of people are working from home now and are saving money and bored, so they can pay more for "fun" cars

The biggest buyer of used car in dealer auction is Carvana they are paying high prices, they cut out the dealers so they can pay more. Thats a huge reason, many people will only buy cars online.

Stimulus money to businesses and regular people, tax time, increased unemployment benefits and increased unemployment benefit time. Businesses are being paid to not be productive and have people not working and people are being paid to not work. Reminds me of the gas and oil crisis of the 1970's

Interesting info

Good luck trying to find a beat up 370z for $5k. These no matter what conditions it is in it these still goes for at least $15k. Sports car values are all time high right now.

Seems like used car prices have hit an all time high however, what would you recommend for us looking for a newish car to do? Wait a bit longer and see how the market reacts or try to find something "ok" before prices go up even more? I have a baby on the way and already looking for another car that is safer but so many of these cars are overpriced right now....

Carvana, carmax, drive time. Paying crazy money for used cars at auction. Price no object. Move to control the used car market direct from Wall Street. Financing with corporate funds.. Been in the biz 47 years. No way to compete. Middle class takes it up the ass. As usual.....we don’t sell to customers anymore. I call Carvana ,make 3 grand a unit. Never see it again. The local used dealers are done for....very sad indeed.

Carmax, Carvana, Vroom gives more than private party and ends up making finance deals with banks

Why is there low supply for used cars? People just don't want trade in to get something newer or better?

Dang that's crazy to see - these newbies really messing up the game

I believe a dealer should top at $2000 profits not willing to pay over that

I wonder if a lot of guys are taking money they managed to get from a CARES Act windfall - loans, unemployment supplements, etc., & are trying to jump into buy here/pay here or other car selling - & trying to get on it. Just speculation. I’m looking for a decent, but not fabulous, used car. I won’t be able to pay prices like that & I won’t take an unreasonable hit on finance, either. I’n actually trying hard to find a private seller for cash. Thank you for this information.

It's because of the scarcity of microchips and semiconductors

is not ignorance is people will pay more to stay safe and have comfort especially during a Pandemic is like home prices some trashy fixer upper homes in California are up to 500k in the worse areas when in 2019 they cost 190k -230k just because it’s a home on a huge lot . Do some research before stating that people are doing this price gouging because of ignorance just as a person who bought a new car in 2018 and just sold my 2008 bmwx5 had multiple cash offers even a bidding war within 3 hours of posting it on offer up . This is what happens when people get more on unemployment than working and multiple stimulus checks ppe loans etc they are going to pay stay safe and have the safety and comfort for themselves and family period. It’s crazy times .

What are your thoughts about the markets outside of AZ?