Which is Selling More in Louisiana? New or Used Cars?
Folks in Shreveport and Bossier City see it every day. You drive down Bert Kouns past the multitude of new car dealerships and you see mostly used vehicles. Manufacturers, dealers and industry all have a variety of explanations for the paucity of new vehicles, a shortage of microchips, the pandemic, the labor shortage, etc. But one thing is for sure. As one local media analyst recently put it, there are more cars in the Posados restaurant parking lot at lunch time than there are cars in the auto lots just a few yards away.
So, the question is, is America becoming a nation of used cars, or is the auto industry about to rebound, and in a big, big way?
A new report by CoPilot takes a look at which U.S. states saw the biggest increase in used vehicle purchases. Their study showed that with a limited number of new vehicles hitting the market, used models are selling at a significant premium. The analysis also found that used car spending in Louisiana increased by 14.7% during the pandemic - a total change of almost $270 million.
Here is a summary of the data for Louisiana:
- Percentage change in used car spending (2019-2020): +14.7%
- Total change in used car spending (2019-2020): +$267,600,000
- Used car spending per capita (2020): $450
- Used car spending per capita (2019): $392
For reference, here are the statistics for the entire United States:
- Percentage change in used car spending (2019-2020): +11.3%
- Total change in used car spending (2019-2020): +$17,002,000,000
- Used car spending per capita (2020): $510
- Used car spending per capita (2019): $460
A summary of the CoPilot study makes a couple of major points. First, there is a drastic shortage of new vehicles available for American consumers and those that are selling far above the listed price. As a result, used car sales - and their cost - are climbing in kind.
The good news is that prices for new and used vehicles in Louisiana aren't nearly as high as in other areas, a result of folks deciding to hang on to their current cars for just a little while longer.