Buying a new car has become increasingly expensive, with prices remaining elevated due to inflation, supply chain disruptions, and rising production costs. In contrast, the average price gap between new and used cars (roughly $20,000) has made pre-owned vehicles a more attractive option for budget-conscious buyers.
This trend has fueled strong demand in the used car market, benefiting companies like Carvana Co. (CVNA), CarGurus, Inc. (CARG), and Cars.com Inc. (CARS), which are capitalizing on shifting consumer preferences.
