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Used-car market faces a bumpy ride

An aerial view of a CarMax lot that holds hundreds of used cars and trucks. (Chip Somodevilla/Getty Images)
An aerial view of a CarMax lot that holds hundreds of used cars and trucks. (Chip Somodevilla/Getty Images)

A dearth in the supply of new cars is continuing to wreak havoc on the used-car market. Soaring prices coupled with rising interest rates and inflation have also hit the industry hard.

The nation’s largest online used-car retailer, Arizona-based Carvana, has seen its shares fall nearly 90% since November and has laid off thousands of staff.

Michelle Krebs, an executive analyst at Cox Automotive, explains what’s driving the problems at Carvana and beyond.

This article was originally published on WBUR.org.

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