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The dealer emphasizes that he specializes in cars priced at $55,000 and under, an area that continues to see significant competition as other dealers also scramble to buy affordable vehicles. The elevated auction prices have made it unattractive for him to make reinvestments at this time. While he usually aims to purchase 15 to 20 cars weekly, he currently finds himself acquiring only a handful. The concern grows that the traditional restocking phase might not materialize this year.
Given that dealership sales directly influence trade-ins — the lifeblood of the used car market — the dealer predicts a domino effect. As new car dealers struggle with their sales, this leads to fewer trade-ins, which ultimately results in a scarcity of vehicles available at auctions.