Falling Used-Car Demand Puts Pressure on Carvana and Other Dealers – The New York Times
About a year ago, the used-car business was a rollicking party. The coronavirus pandemic and a global semiconductor shortage forced automakers to stop or slow production, pushing consumers to used-car lots. Prices for pre-owned vehicles surged.
Now, the used-car business is suffering a brutal hangover. Americans, especially people on tight budgets, are buying fewer cars as interest rates rise and fears of a recession grow. And improved auto production has eased the shortage of new vehicles.
As a result, sales and prices of used cars are falling and the dealers that specialize in them are hurtin…….