[Por_sha911]

Soaring used vehicle prices are set for a correction, according to CarMax CEO William Nash.

Conditions caused by COVID-19 boosted average used car prices by a couple thousand dollars and in some cases to above their original sticker prices.

Late-model used car prices are "bumping up against the new car" prices, Nash said on CarMax’s first-quarter earnings call on Friday. "I think we are getting close to that inflection point."

Used car and truck prices in May surged 30% annually, boosted by a global chip shortage driving more customers into pre-owned vehicles and pent-up demand from consumers, many of whom had more cash to spend thanks to government stimulus measures.

Nash expects prices to moderate as the effects of government stimulus checks recede. There is already evidence that is happening. Personal spending was flat in May, slowing from a high of 5% growth two months prior.

Nash says the supply chain constraints surrounding new cars won’t be remedied until the "latter part of this year."

https://www.foxbusiness.com/economy/used-car-price-bubble-is-about-to-burst