Used car prices to go higher in 2022

If South Florida motorists thought buying a new car is a tough act, their quest for a latemodel used car alternative is likely to be just as challenging well into next year.

Tight supplies, higher prices and limited selections are likely to continue to pester the market, dealers and economists say. That means buyers will be spending more time trolling for cars online, visiting dealer lots with limited selections and making compromises on their wish lists.

Used car prices, according to the U.S. Bureau of Labor Statistics’ Consumer Price Index, are up 39.8% since the COVID-19 pandemic started battering the economy in March 2020.

Broward County residents Marie and John Leo, and son Malik, have felt the impact. They’ve been on a multi-faceted mission to upgrade the cars in their family since the summer. John ordered a new Acura from the factory in July. It was supposed to come in September but he’s still waiting.

Malik, who is headed for graduate school, wants to upgrade his 2003 car to a newer pre-owned model. And he wants to make a deal before he leaves.

The Leos were touring an AutoNation Toyota dealership in Weston on Friday. While there was an ample number of used cars from which to choose, the right car didn’t present itself.

“We’re in November,” said Marie Leo. “We’re still looking.”

Malik, she said, “is looking for something fuel efficient. He’s on a budget. He still wants something reliable, affordable and economical.”

How’d we get here?

Sean Snaith, director of the Institute for Economic Forecasting at the University of Central Florida, points to repeated business shutdowns designed to curb the COVID-19 pandemic, and a relentless surge in consumer demand that followed when

MIKE STOCKER/SOUTH FLORIDA SUN SENTINEL Marie Leo looks over a used Acura for her son at AutoNation Toyota Weston on Friday.“He’s a recent college graduate, and he’s on a budget, so it’s not easy,”she said.