EL PASO, Texas — Since the start of the pandemic, there has been a shortage of microchips that is causing fewer new cars to be manufactured, which in turn is increasing the demand for used cars.
This year alone, around 370,500 vehicles have already been removed from global factory schedules due to chip shortages.
This lack of new car inventory is causing the used car market to skyrocket.
“The demand is much higher,” said Cameron Ortiz, general manager of Stogner Auto Sales. “A lot of families have only bought new cars, and now they have to venture into the world of used cars and come see us, you know, so it’s really different.”
Ortiz told ABC-7 they see 1-2 families come to their lot a week after visiting a new car dealership. He said they are turning to used cars because of the price and the wait time to get a new car.
As more and more people buy used, the price has also increased.
According to Kelley Blue Book, a vehicle valuation company, used car prices have risen 44% since the start of the pandemic.
Ortiz said their prices have gone up about 20-30% for them.
Due to changes in the industry, they also had to make changes to their pitch.
At the end of 2020, they had between 75 and 80 cars filling the lot. Now they have between 35 and 40 – almost half.
“We’ve definitely reduced our inventory, so we’re not spending crazy money on vehicles,” Ortiz said. “We could fill the lot, but our decision is to have lower inventory and better priced products.”
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