Currently, the U.S. is facing a shortage of necessary parts (including semiconductor chips) to build new vehicles, largely due to the early 2020 factory safety shutdowns at the start of the COVID-19 pandemic. Auto manufacturers are struggling to keep up, and the biggest culprit is a global chip shortage. Shutdowns slowed down orders and chip factories shut down as well, and now that things are opening back up, there’s some lag in the automotive and tech industries.
This impacts two huge things in terms of your car buying and selling power:
- Used car prices are going up
- Used vehicle values are higher
If you have a trade-in or are planning to sell your vehicle, then now may be a good time to put it on the market. RK CHEVROLET KIA SUBARU of Vineland, NJ 08360 needs vehicle inventory to make money, and your used vehicle might be worth more than it was originally projected to be worth. Since we are lacking in new car stock, we are relying on used vehicles to fill the demand.
“If you have an extra car to sell it’s a great time – there may never be another time greater than this," Eric Ibara, the director of residual values at Kelley Blue Book, told the L.A. Times. “But if you’re selling a used car to buy another car, it could be difficult. I’ve been in the industry 30 years now and I have never seen the market as hot as it is.”
Since used vehicle values are up, the sales price of used cars is up as well. This could mean having to shell out more cash if you choose to buy or finance a used vehicle – which isn’t great news for many borrowers that require affordable loans on used cars. But if you’re ready for an upgrade and you want to trade in your car, now may be the time to sell before the market cools down.
Contact JOE at RK Chevrolet, Kia & Subaru Auto Group, 502 N. DELSEA DRIVE, VINELAND, NJ 08360, 856.213.4026 to Make a Move TODAY!