Fare Rides

Maryland Saw 5.4% Increase in Used Car Purchases During Covid-19

It’s all about what’s affordable these days – no matter what you’re buying.

Inflation has been the dominant story in the U.S. economy for most of the last year. Year-over-year increases in the Consumer Price Index have reached their highest levels in 40 years, with consumers paying more for expenses from food to housing to energy. And one of the categories that has consistently seen the highest price increases in this inflationary period is vehicles, both new and used.

While the early months of the COVID-19 pandemic saw lower demand for vehicles as people avoided travel and commuting, the vehicle market has rebounded strongly since the second half of 2020. COVID-related concerns and transitions to remote or hybrid work have put a dent in public transit ridership, and instead, more former transit riders have opted to buy cars. Low interest rates, strong government stimulus, and a rebounding economy have given many households the wherewithal to make vehicle purchases.

A lingering challenge, however, has been supply. COVID-19 outbreaks over the last two years have disrupted global supply chains, and carmakers have been particularly hard hit. Obtaining parts such as semiconductor chips has been more challenging, and backlogs at ports worldwide have made it harder to ship new vehicles. In total, manufacturers produced approximately 1.7 million fewer vehicles in 2021 than 2019, and with a limited number of new vehicles hitting the market, used models are selling at a significant premium.