Leased and used cars gaining value in Iowa amid shortage of sale inventory

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URBANDALE, Iowa– Car sales have continued their furious pace – with limited inventory being snatched up by hungry buyers. According to the Iowa Automobile Dealers Association, car sales have surpassed pre-pandemic levels by 17%. However, due to various manufacturing shortages, dealers are only getting up to 70% of the new vehicles they normally receive. 

President of the Iowa Automobile Dealers Association, Bruce Anderson, those with leased cars could benefit from this situation. 

“The value of your trade, what you’re driving now, usually depreciates the moment you put miles on it, the longer you own it. The value of the fair market value goes down,” Anderson said. “Right now those values are way up.” 

Ramsey Auto Center in Urbandale  usually has anywhere from 177 to 200 new Subarus on their lot at a time. Now, they have 14  with 77 cars in transit, already pre-sold.

General Manager for Ramsey, Scott Long, said this has made it incredibly challenging to sell cars traditionally. 

“We’ve had Saturdays where we had two Saturdays last month that we showed up on Saturday with one non-sold new Subarus,” Long said. “So we would actually take a pre-owned of that existing model year or one of our courtesy vehicles, so that people had something to test drive before choosing which one of our allocation they wanted to take.”

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