Lifestyle

Used Car Prices on the Rise: What You Need to Know

Published

3 years ago

June 21, 2021

The impacts of the Covid-19 pandemic are wide-ranging. Some are also easy to overlook. Not every effect of the pandemic is as obvious as others.

For example, rental car companies often sell their vehicles after a year or so. This practice plays a critical role in determining the average cost of pre-owned vehicles. Many used cars are actually formerly rental cars.

However, because travel was extremely limited during the pandemic, when rental car companies sold off their vehicles early, they didn’t buy replacements. The low demand for rental cars made buying new vehicles unnecessary at the time.

This has resulted in a shortage of used cars available to buyers. Because rental companies didn’t buy as many replacements as they typically would, they now don’t have as many vehicles to sell to used car dealers and buyers.

This is one of several reasons used car prices are remarkably high right now. The implications of this for car buyers, owners, and sellers are numerous.

For example, if a car owner was considering eventually selling their vehicle and upgrading to a new model, now may be the best time to do so. Used cars are currently scarce, but that won’t always be the case. As their availability returns to normal levels, so will their prices. If a seller waits to sell their vehicle, by the time they do, they may not get nearly as much money for it as they would if they sold sooner rather than later.

It’s also worth noting that the pandemic made manufacturing and designing new vehicles very challenging for several months. This also contributed to the rise in used car prices. With fewer new vehicles available, buyers had to purchase used cars. Increased demand yielded increased cost.

However, new vehicles are beginning to hit the road again as the pandemic winds down. A buyer might thus sell their used car for a good price now in order to upgrade to a new model.

Even someone who doesn’t currently own a vehicle might want to consider these factors if they were planning on buying one in the near future. This is the case if they initially planned on buying a used car to save money.

Typically, buying a pre-owned vehicle instead of a new one is an effective way to limit spending when a buyer is on a tight budget. However, given that used car prices are currently much higher than ordinary, the amount of money a buyer could save is currently somewhat limited. They may simply be better off buying a new car that’s in better condition and boasts more innovative features.

Additionally, while demand for used vehicles may eventually wane, reducing their cost as a result, experts believe that might not necessarily happen soon. Now that vaccines are available and restrictions are being lifted, many people are buying used cars out of a desire to travel. This trend may continue for at least a year. As such, the high demand for used cars is probably going to remain consistent for some time.

Whether someone plans on buying a car, selling a car, or both, they should remember these points when deciding how to proceed. The rise in used car prices may be one of the more overlooked ripple effects of the pandemic. However, for drivers, it could also be one of the more significant.

Lifestyle

From Wealth to Fields: A Billionaire’s Commitment to Small Farmers

Published

2 weeks ago

July 11, 2024

Michelle Langton

In recent years, billionaire Stefan Soloviev has transitioned from the world of New York real estate to the fertile farmlands of the American West.

His journey from urban wealth to rural development showcases a unique dedication to revitalizing small farming communities and transforming the agricultural landscape.

A New Vision for Agriculture

Stefan Soloviev, son of the late real estate tycoon Sheldon Solow, has amassed a considerable amount of farmland across Colorado, Kansas, and New Mexico. Soloviev’s agricultural enterprise, Crossroads Agriculture, spans over 400,000 acres, making him one of the largest landowners in the United States.

This substantial investment is not merely a financial venture; it represents a commitment to supporting and empowering small farmers in these regions.

Soloviev’s approach to farming is characterized by his desire to move away from competitive practices that often leave small farmers struggling. Instead, he emphasizes collaboration and sustainability.

By leveraging his resources, Soloviev aims to create a farming environment where smallholders can thrive alongside larger operations. This philosophy is particularly evident in his strategic acquisition of the San Luis & Rio Grande Railroad, a critical transportation link for agricultural products in the region.

Revitalizing Rural Communities

Soloviev’s impact extends beyond farmland acquisition. His purchase of the San Luis & Rio Grande Railroad at a bankruptcy auction for $10.7 million highlights his broader vision for the agricultural sector.

This railroad, previously owned by Iowa Pacific Holdings, connects the San Luis Valley to the national rail network, facilitating the efficient transport of goods and boosting local economies.

The acquisition is seen as a positive development for the San Luis Valley, with Soloviev’s Colorado Pacific Railroad expected to be more community-focused and supportive of local initiatives compared to the previous owners. This includes potential cooperation with local recreational projects, such as the proposed Heart of the Valley Trail, which aims to integrate rail and trail use for community benefit.

Soloviev’s dedication to the region is also reflected in his willingness to work with local stakeholders to address community needs. His approach contrasts with more traditional, profit-driven business models and underscores his commitment to fostering a sustainable and inclusive agricultural ecosystem.

Building a Sustainable Future

Soloviev’s investment in the Colorado Pacific Railroad and the broader agricultural infrastructure is part of a long-term vision to create a more resilient and sustainable farming community. By improving transportation networks and providing support to small farmers, he hopes to mitigate some of the challenges these farmers face, such as market access and transportation costs.

Moreover, Soloviev’s initiatives are seen as a way to preserve and enhance the rural way of life, which is increasingly threatened by industrial farming and urban encroachment. His efforts to balance economic viability with environmental stewardship demonstrate a nuanced understanding of the complexities of modern agriculture.

In conclusion, Stefan Soloviev’s transition from urban real estate mogul to a champion of small farmers is a testament to his innovative and community-oriented approach.

His significant investments in farmland and infrastructure, coupled with a commitment to sustainability and local engagement, are paving the way for a brighter future for small farmers in Colorado and beyond. Through his efforts, Soloviev is not only transforming

the agricultural landscape but also setting a precedent for how wealth and resources can be used to foster positive change in rural communities.