Pandemic fuels New York used car sale surge, risking ‘Carmageddon’

Used cars are displayed at a used car dealership in downtown Brooklyn, New York. New Yorkers are choosing to buy cars to escape the pandemic. (AFP)
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Updated 12 October 2020
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Pandemic fuels New York used car sale surge, risking ‘Carmageddon’

  • Fears rise of gridlocked, exhaust-choked, and crash-laden city due to the new trend in the Big Apple

NEW YORK: Increasing numbers of New Yorkers are buying cars as they avoid public transport because of the coronavirus disease (COVID-19) pandemic, igniting the second-hand market but undermining hopes of less congestion in the Big Apple.

Julien Genestoux, 35, never owned a car when he lived in Lyon, Rome and San Francisco. And he got through five years in New York without needing one.

“Using a car in the city is a nightmare,” he told AFP. “There’s the traffic jams, going round for hours looking for somewhere to park.”

“For me, it was not practical at all. But here it has become necessary unfortunately.”

A few weeks ago, Genestoux, who has three children, finally took the plunge and bought a family car from a used-car website.

It has allowed his family to escape New York at a time when virtually all its cultural activities are shut down. Genestoux has swapped weekends in Central Park for trips to Rockaway beach.

He was the last of his group of friends to buy a car — none of them had ever owned one before the pandemic.

The Manheim used vehicle value index, which tracks price trends in the US, reached an all-time high of 163.7 in August, against 141.3 a year ago. In early June, second-hand car dealer Chris Stylianou was close to completely emptying his stock, something he had never come close to achieving in his 30-year career.

“A car I was buying for $5,000 two years ago, I end up (paying) $5,500 today. Same car, same model, same condition,” said Stylianou, owner of Major Auto Show in Brooklyn. “People were buying just to avoid public transportation. Anything that was good to go would go,” he added.

Rudy Blocker, a used-car salesman at A Class Auto Sales, also in Brooklyn, believes the surge in purchases was helped by weekly $600 checks the government sent to unemployed Americans until the end of July to help stimulate the economy.

“People had a little money and it was burning their pocket,” he said.

Sales of new cars have not soared, however.

While they have picked up since June, they are still significantly down from 2019 for all major makers.

“With a lease, you’d have to commit for three years,” said epidemiologist Magdalena Cerda, who bought a BMW station wagon for $35,000.

“When you buy a new car you are losing so much money just as soon as you drive it out of the parking lot. It seemed like a better investment just to buy a used car,” she added.

Cerda, the mother of a seven-year-old girl, wanted a temporary fix because she hopes New York City will one day return to normal and she’ll be able to safely take the subway again.

“Everyone hopes it is just temporary,” agreed Genestoux.

“If the situation returns to normal, I think we would get rid of the car,” he added.

Neither Genestoux or Cerda use their new vehicles on weekdays, unlike the tens of thousands of New Yorkers who now hit the road every day.

“It’s different people (from before). It’s people who work around here,” said Fernando Bajana, manager of the GGMC Seven Eleven parking lot in Midtown, Manhattan.

“Before they came to work using public transportation but now they are afraid to do so.”

Transportation Alternatives, a nonprofit that works to take cars off New York’s streets, noted in September that despite most New Yorkers working from home “traffic is down only 9 percent compared to last year.”

The group warned that without action the city faces becoming a “gridlocked, exhaust-choked, and crash-laden ‘Carmageddon.’”

Self-proclaimed champion of the fight against pollution Mayor Bill de Blasio has not yet laid out any plan to prevent congestion borne of the pandemic.

A pre-pandemic congestion charge scheme for midtown Manhattan scheduled for January 2021 has been postponed until at least the end of 2021.

“If today people buy cars, I think that shows there is also a failure of public transport policies in the city,” said Genestoux.


Closing Bell: Saudi main index climbs to 10,485 

Updated 21 December 2025
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Closing Bell: Saudi main index climbs to 10,485 

RIYADH: Saudi Arabia’s Tadawul All Share Index edged up on Sunday, gaining 34.32 points, or 0.33 percent, to close at 10,484.59. 

The total trading turnover of the benchmark index stood at SR2.59 billion ($690 million), with 168 listed stocks advancing and 87 declining. 

The Kingdom’s parallel market Nomu also gained 100.37 points to close at 23,454.65. 

The MSCI Tadawul Index advanced by 0.13 points to 1,377.44. 

The best-performing stock on the main market was Nama Chemicals Co., whose share price increased by 9.98 percent to SR22.38. 

The share price of Al Masar Al Shamil Education Co. rose by 9.15 percent to SR23.85. 

Saudi Paper Manufacturing Co. also saw its stock price climb by 8.42 percent to SR57.95. 

Conversely, the share price of Canadian Medical Center Co. dropped by 6.37 percent to SR6.03. 

The stock price of Kingdom Holding Co. also declined by 3.16 percent to SR8.28. 

In the parallel market, Alfakhera for Mens Tailoring Co. was the top performer, with its share price advancing by 16.40 percent to SR8.80. 

On the announcements front, Theeb Rent a Car Co. said it had signed a long-term vehicle leasing services contract valued at SR110.4 million with Hungerstation Co. 

Under the deal, Theeb will lease 2,000 vehicles to HungerStation for a period of four years starting from 2026, according to a Tadawul statement. 

The statement added that the vehicles will be delivered in batches within the first six months from the contract start date, taking into consideration global logistical circumstances and procedures beyond the control of both the agents and the company. 

The contract is expected to have a positive impact on the company’s financials from the first quarter of 2026. 

The share price of Theeb Rent a Car Co. declined by 0.79 percent to SR37.80.