Friday, September 30, 2022

Pandemic Impacts Used Car Values

(Courtesy of Erik McLean/Unsplash)

GLOUCESTER — The effects of shutdowns due to the pandemic are expected to affect used car values, according to a release from the Gloucester County Commissioner of Revenue, Jo Anne Harris.

Industries worldwide are still assessing the effects of the sixteen month shutdown period, which was caused by the COVID-19 pandemic. Chief among concerns for the automobile industry is how the new and used car industry faired and its ability to manufacture and sell cars, trucks and motorcycles.

As a result, personal property tax on some vehicles in Gloucester County will also see changes.

In pre-pandemic years, vehicles depreciated in value from month to month, meaning that the amount taxed on any given automobile would also decrease.  However, because of the pandemic, between January 2020 and January 2021, the major vehicle valuation services, such as the National Automobile Dealer’s Association (NADA), indicated an increase in market values. Last summer alone saw prices throughout the used car market jump 10 percent.

In the pandemic’s domino effect, the Federal Reserve Board cut interest rates, car manufacturers ceased production in order to make personal protective equipment and ventilators, and companies with large fleets of vehicles were not replacing their inventory. All of these have played a role in the increase of used car values.

For any questions about this or other county tax matters, residents of Gloucester County are encouraged to contact the County Commissioner of Revenue’s office at (804) 693-3451.

 

 

 

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