[breakingcups]

Do you know why those prices have increased? I naively would've expected those prices to drop due to COVID, not increase.

Also, why would one still buy a pre-owned vehicle if a new vehicle is available for a very similar price?

[daniellarusso]

So, the current ‘joke’ is, buy a brand new vehicle, wait a month for its value to appreciate, then sell it back to the dealership.

My guess on the reason for the pricing increases is several factors:

At the beginning of the ‘shutdown’, it affected auto auctions, where dealers obtain a decent amount of their pre-owned inventory, besides trade-ins.

Actual manufacturing shutdowns decreased new car outputs

The rescue package allowed for a substantial jolt for vehicle financing, and it is not uncommon now for people to finance a car for a 6 year term. There are also 7 year terms, now.

So, awash in finance money and limited supply.