SAN DIEGO — The used-car market perseveres, but industry experts warn the conditions that allowed dealers to sell with ease and vigor in 2021 no longer exist. And dealers are buckling down to be ready for the changes afoot.
2023 is shaping up to be a year of caution and diligence on the used-car side, according to dealers, used-car-related company leaders and analysts who convened at the Used Car Week event in San Diego last week. Some are bracing for what could become severe destruction of used-car demand but say it has not yet reared its head. Still, speculation of recession and signs of a more prolonged slowdown are pushing players in the market to tighten their belts and get ready.
That's already happening at traditional dealerships and at online upstarts such as Carvana Co., which last week said it was cutting 1,500 jobs, or 8 percent of its work force.