Sonic Automotive Inc (SAH)

[Bountiful_Harvest]

The high prices of used cars may finally be dropping: Sonic Automotive president.

https://www.cnbc.com/2021/08/01/used-car-high-prices-may-finally-be-dropping.html

KEY POINTS:

The average transaction price for a used car was $25,410 in the second quarter of 2021, up 21% year-over-year, the highest average price for a pre-owned vehicle that Edmunds has ever tracked.

Several automakers, including General Motors and Ford, have cut new vehicle production due to semiconductor chip shortages, putting further constraints on inventory and driving up prices.

New car inventory is improving and the chip issues should alleviate in the months ahead.

Dyke says the market is leveling off, with prices dropping by as much as $2,000 for a used car over the course of July as the supply of new cars is starting to increase

All about SUPPLY and DEMAND!

“We’ve never seen this before where you have an inversion where wholesale prices are really higher than retail prices, but that’s all coming to an end.”