Since March 2020, the automotive marketplace has been highly volatile. The COVID-19 pandemic forced manufacturers to pause production lines, greatly reducing dealerships’ inventory to a level that was unable to meet surprising consumer demand. As the gap between supply and demand widened, dealers turned toward used inventory to maintain volumes and profitability. The increased demand for used vehicle acquisition significantly raised wholesale vehicle prices to historical levels as dealers struggled to fill their lots with used inventory. Some dealers even report purchasing vehicles near or at original MSRP!
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