Consumers’ preference for personal transportation due to the COVID-19 outbreak helped AutoNation Inc. (AN.N) outperform Wall Street profit and sales projections for the fourth quarter on Thursday.
In premarket trading, the company’s shares were up as high as 5%.
People who had more money to spare hurried to purchase automobiles this week, leading to a year of record earnings for the auto retail business.
For personal car ownership to continue high for the forseeable future, “AutoNation CEO Mike Manley said in a statement after his appointment on Nov. 1.
Used car prices are rising at a faster rate than the prices of new ones, and experts are raising their alarms.
“No matter what the price of an automobile is—new, used, old, or a trade-in—it doesn’t matter to me. In an interview with Edmunds.com senior manager of insights Ivan Drury, “FOX Business’ Jeff Flock talked about how the cost of buying a car is going up every day.”
Reacting to new data from the US Department of Labor showing that used vehicle prices had risen by over 40% since last year, the automotive value expert shared his thoughts. There has been a 12 percent increase in the number of new vehicles sold as well.
It’s “nothing, absolutely nothing” like what’s going on in today’s market, says Drury.
A three-year-old Dodge Grand Caravan is now worth more than $25,000, according to Edmunds statistics, a 69 percent increase from a year ago. The average price of a Nissan Versa of the same age was $9,842 in January, but has now risen by 66% to $16,366.
Until the end of the year, analysts predict that Used cars prices will continue to rise.
A 2019 Chevy Equinox with an MSRP of $26,700 arrived into the lot at Barbera Autoland in Philadelphia. As of right now, the list price is $29,984.
The cost of labour and making computer chips has gone up because there aren’t enough computer chips in the world.
