Trade’s Impact on Used Prices Remains Uncertain Featured

As tariffs start to rise in the U.S., many observers expect a negative impact on the new-car market. The impact on the used-car market remains less certain.

West Coast Shipping, a car exporter with locations in California and New Jersey, claims the tariffs will lower the prices of all used cars and classic cars in particular.

Classic cars are traded on a global scale, a West Coast Shipping press release states. Low import duties on classics, along with record low ocean shipping rates, allow automotive enthusiasts to purchase cars from overseas with ease.

The release cites a statistic that there are over 35,000 classic cars exported from the U.S. each year.

This might be the case, but right now the classic car market seems able to absorb a loss.

Eric Lawrence, director of specialty products for Black Book, said the market right now is very strong, especially at the high end, as wealthier consumers reap the rewards for an almost-decade-long bull market for stocks.

West Coast Shipping goes on to say that the main used-car market will also be hurt by a decline in the number of used vehicles exported out of the country.
The firm claims that Europeans purchase many of the cars that come off-lease.

At least one segment of the used-car seems to be benefiting from the tariffs so far – the salvage business.

Kristie Letizia, president of Great Milwaukee Auto Auction, said prices for her in-op sale are soaring. At one recent sale it reached $450.

“Scrap has never been higher,” she said. “That is because of the tariffs that the president put on steel. We are able to really see the benefits in the lanes.”

Higher scrap prices can help rental car companies, dealers and auto finance companies mitigate their loses.

 

 

 

 

 

Last modified on Saturday, 07 July 2018 14:26