More than six years after COVID-19 landed, the US car market is still paying for it, and nowhere more than in the used-vehicle aisle. Today’s supply of late-model used cars depends on what got built years ago, and that’s where the trouble starts. The shortage hitting dealer lots now traces straight back to the factories that went dark in 2020 and 2021. Things are unlikely to change anytime soon, either.

 

Production shutdowns and critical supply shortages meant approximately 8 million fewer vehicles were built during the COVID-19 years for the US market. Buying a new car was harder at the time, prompting manufacturers to shift their focus toward higher-end models with better margins, which in turn drove a significant spike in average new car prices.