JD Power Analyst Says Used Car Market Won't Crater Because Automakers Are Longer Addressing Affordability

Although the prices of used vehicles have stopped rising, that does not mean that the market for them is on a cliff’s edge, waiting to fall. Continued supply line difficulties throttling the arrival of new vehicles mean that the market is unlikely to collapse.

That’s according to Tyson Jominy, vice president of data and analytics at J.D. Power, who spoke to Automotive News. He pointed to pent-up demand on the new side of the market, and said that will continue to make used vehicles rare in the years to come.

 

If automakers could produce vehicles like they did in 2018, before the COVID-19 pandemic, which prompted chipmakers to alter their priorities and other suppliers to shut down factories, the backlog of sales could be cleared “quite quickly” and the market would “be back to a more moderate price environment,” according to Jominy.

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