00:00It's been a busy season for this used car dealership in Virginia and front-end
00:05manager Vijay Kumar says that they're all trying to keep pace with revved up
00:08demand. Usually the summer is always active but it wasn't like this usually
00:13at most it's like 200 average but this summer alone we've been selling a lot
00:18more than we expected and we're trying our best to replenish our
00:21inventory this time big time we've never sold that many cars like this just
00:27because of the potential fear of the tariffs. And how much more is more than
00:31they expected? I would just say around like 300 cars in just one month alone we
00:36were moving around selling cars all in one time we sold like 20 cars in one day
00:41and we're just a small dealership. With a 25% tariff on most imported cars and
00:48parts and a reduced 15% rate for EU and Japanese models not yet in effect, rising
00:55vehicle prices have pushed more Americans towards the second-hand market.
00:59But supply and demand are catching up there too, meaning used cars are quickly
01:03losing their place as affordable alternatives.
01:07As demand for new cars goes down people are keeping cars longer because there's a
01:13shortage of used cars right now. Prices are being pushed up significantly. As I
01:21mentioned earlier people are keeping their cars longer, they're keeping them fixed up,
01:27they're driving them longer and longer and longer, and the trade-in availability is just not there.
01:36Average transaction prices for three-year-old used vehicles have risen steadily,
01:41with growth especially obvious in the second quarter after Trump announced the sweeping
01:46duties on imports including cars. The best I would really say just look at cars look at the news but
01:52more so more so if you like a car particularly right get it as soon as you can I would say.
02:02A used car salesman would always say that but at this particular time many would be inclined to listen.
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