shows a 10.8% rise in the average price of a used car in south-central Pennsylvania from July 2021 to July 2022. The regional data pulls from the Harrisburg, Lancaster, and York metro areas.But local dealers suspect that most of that increase was realized early in the year, with tightness in the auto market starting to abate in the past several months.
Area dealers who spoke to PennLive described a roller coaster ride in the industry over the past two years.brought global supply chains to a grinding halt, and consumers – with extra cash in hand due to the federal stimulus bills – shifted their consumption from services to goods. As the supply of new cars dwindled, and demand for vehicles overall rose, the value of a used car began to skyrocket, with many cars being worth more than they were purchased for.
“Year over year, our new car sales are higher, as opposed to our used car sales which are lower than last year,” said Rick Jordan, president and CEO of Smith Land & Improvement Corporation, which owns LB Smith Ford Lincoln in Lemoyne. “If you’re a dealer and you get in the mindset of what things used to cost two years ago, inventory is going to be hard to come by,” said Dwight Smith Jr. of Below Bluebook Auto Sales, which has locations in Harrisburg and Mechanicsburg.
“If you want to move it and sell it, you better be priced competitively, and that means thinner margins,” Khouri said.