Used car prices are expected to continue climbing in the near term as the global semiconductor chip shortage persists and demand for private vehicles rises amid the resurgence of COVID-19 cases. So, we think it could be wise to bet now on quality used car retail stocks AutoNation (AN), Group 1 Automotive (GPI), and Sonic Automotive (SAH). Read on.
The demand for private vehicles is rising as the COVID-19 omicron variant cases surge. This, together with the ongoing semiconductor shortage and supply chain constraints that have been hampering the production of new vehicles, are causing used car prices to rise.
Referring to the Manheim index of used car prices, market researcher Jim Bianco said on Dec. 26, “In the last four months, they’ve gone up in price more than 20%. Not only is that more than the S&P, but over the last four months that’s more