July 6, 2020—Used-car sales have seen an increase during the COVID-19 pandemic, reports The Wall Street Journal.
According to the report, used-car sales rose 17 percent above the pre-pandemic forecasts in June after dropping 38 percent in April.
Factors influencing the increase comes from lower interest rates, to about 4.73 percent on average for a 36-month used-car loan, from 5 percent in early March. The report also says that some buyers have used their federal stimulus checks on their vehicle purchases.
The used-vehicle market’s recovery is a relief for dealers and auto makers, which have seen other areas of their businesses affected by the pandemic.
Chapman Dugger, a director at a dealership group with about 10 stores in Maryland and Virginia, for example, said in the report that used-car sales rose by 26 percent in June compared to the year earlier, while new vehicle sales fell by 16 percent. Other parts of the business, including parts sales and collision repair, also are struggling because people are driving less, he told WSJ.