The year 2022 will go down as one of the most peculiar ones ever in the U.S. used car sector. Consider the average price of a new vehicle in 2022 clocks in at $33,000 compared to $26,700 in 2021, with the average dealer markup at $10,000 this year.
“Prospective car buyers are facing the perfect storm,” right now said Kunes Auto Group chief executive officer Scott Kunes. “Federal Reserve interest rates spiked, inflation jumped, there’s a shortage of cars and car parts, and gas prices are at a record high.”
As interest rates rise and consumer confidence falls, Kunes sees both new and used car sales slowing. Auto industry gurus see things the same way, although prices aren’t coming down to 2021 levels anytime soon.