New car shortage hits used cars hard
WEST MELBOURNE, Florida – Looking to buy a new car? Good luck.
A supply chain problem, including computer chips and other parts, means very little news leaves the factory.
What would you like to know
- The average list price of a used vehicle hits a record high of $ 25,829 in August
- As fewer and fewer new cars arrive on consignments, customers are looking for used cars and driving up prices
- Used car prices expected to remain high until 2025
Don Poussard, owner of Harbor City Auto Sales in West Melbourne, spends a lot of time on his lot, and it’s half full these days.
“We’re down 50% on inventory,” he said. “It’s just that they’re not over there.”
There are also very few used cars available. The current global shortage of computer chips is impacting the ability of automakers to manufacture new vehicles.
“So their parking lots are empty, so they can’t buy new cars, so they go to used cars,” Poussard said, adding that he had never seen it like this in 15 years of activity.
He says new car dealers normally have 200 or 300 new vehicles for sale.
“They have 14, seven or 10 – you can roller skate in the parking lot,” he said.
Due to the shortage of new cars, used cars that are 3 to 4 years old, with several thousand kilometers, are sold for what they were new.
Car rental companies that rent new cars are obligated to buy and lease used vehicles.
Poussard said car auctions would normally sell 40% to 50% of their inventory on auction days.
Right now, they are flying off lots at a whopping 80-90% rate.
“It’s’ chip-aggeddon,” Poussard said.