Chip Shortages Driving Used Vehicle Demand, Prices
We first noted a strong uptrend in consumer demand for used vehicles in the June MegaTrends Report, highlighting the ongoing impact of microchip shortages on the U.S. vehicle market U.S
Consumer mentions of purchasing or searching for a used vehicle just reached a new all-time high level: +18% QoQ and 24% YoY (90-day moving average).
New vehicle production can’t keep pace with consumer demand -- Used vehicle prices have responded accordingly to the supply shortage.
According to the June CPI Summary, the price of used cars and trucks rose +10.5% from the prior month, an increase of +45.2% YoY.
Used Car Sellers Set to Benefit: $CVNA, $KMX, $VRM
LikeFolio recently released a standalone bullish alert for the used car seller CarMax ($KMX); our position has already gained by modest +16% from entry.
However, underlying mentions show that the entire industry is getting a huge boost from the unusual conditions in the used vehicle market.
In addition to Carmax, the market leader Carvana ($CVNA) and market newcomer Vroom ($VRM) have experienced strong demand growth in the past quarter.