Used car prices could climb with the auto worker strike

The length of the strike will be a big factor
Published: Sep. 15, 2023 at 6:18 PM MST
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TUCSON, Ariz. (13 News) - The auto worker strike now threatens higher prices down the road and could ultimately impact used vehicles and new ones. What just happened with COVID-19, with fewer new cars shifting the pressure to the used market, will depend on how long the strike lasts.

The thrill of a new car, even if it’s new to you, was with Jennifer Campbell Friday.

“I just bought this 2013 Land Rover and I love it,” she said.

“She was ecstatic about that car! That’s why I do it,” said Terris Worley, owner of All Cylinder Auto.

Worley has been following the United Auto Workers strike even though he sells used cars.

“I predict that if it does last over a month we’re going to see an increase in vehicle prices and the cost to acquire used vehicles so that transfers to more expensive used cars, less new cars. It’s a trickle down effect,” Worley explained.

“They announce the strike, it may have happened, but it was a short period of time,” said Fabian Gutierrez, a mechanic at All Cylinder Auto, about previous news of auto worker strikes.

He said that he thinks a strike would have to last months before it impacts vehicle repairs and it would depend on the part needed.

“We have different vendors we use. We do go through dealerships as well, just in case we have to go through them,” Gutierrez said.

“It starts at the top, flows down, and everybody’s got to eat it,” Worley said.

Worley will watch what happens down the road, but Jennifer Campbell is just happy at the moment.

“It’s got low miles, I got a really great deal on it, and it’s in really good mechanical shape,” Campbell said.

Worley said that he could ultimately face the challenge of competing with the large dealerships for used cars at the auctions, which drives up the price of used cars.

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