Impact of UAW strike trickles into used-car market, as dealers secure more supply
Dealers, it seems, are shoring up used-car inventories on their lots in case the United Auto Workers strike is prolonged and they’re left empty-handed on the new-car side.
According to the latest Intelligence Report from CarGurus, used-vehicle inventory at dealerships in September jumped 2.5% from August, though still down 3.8% year-over-year and 8.4% from pre-COVID levels.
“Although the UAW strike has yet to generate a significant impact on the new car market with overall pricing and inventory conditions improving for consumers so far, September market data shows rising trends to watch,” CarGurus director of industry insights and analytics Kevin Roberts said in an analysis.
“The decrease in inventory for strike impacted mid-size pick-ups is only accelerating and we are now seeing growing declines in selection of off-road SUVs, as well,” Roberts said. “The used market also hasn’t been immune to strike concerns with inventory rising by 2.5% as dealers are likely looking to have more vehicles on hand in case a prolonged strike impacts new vehicle availability.”
The increase in used inventory on dealer lots also impacted turn prices and used-car prices. Days-on-market for used cars was down 1% month-over-month in September, according to CarGurus, and it fell 1.3% year-over-year.
Thanks in part to larger inventories, used-car prices fell 0.6% from August and reached $29,978, which CarGurus said is the fourth straight month-over-month decline. The last time used-car listing prices were below $30,000 was February.