Experts say it’s due to a number of factors, including low inventory, both in the new and pre-owned car markets, as well as pandemic-related production shutdowns and a lack of computer chips needed for new cars.
Best cars to sell, worst cars to buy as the chip shortage sends prices soaring
(iSeeCars) – The global microchip shortage is restricting new car supply, which leads to restricted used car supply due to fewer people trading in their used cars. This combination of diminished supply and increased demand has caused used car prices to soar.
According to iSeeCars.com’s latest analysis of over 1.2 million used car sales in April 2021, used car prices increased 16.8 percent, or $3,926, compared to the same period the previous year. Used car prices typically remain relatively constant year over year, as 2019 had a 0.2 percent reduction over 2018, and 2020 had a 0.1 percent increase over 2019.
Yup. A decade plus ago there used to be around 2 dozen chip manufacturers globally but with increasing sophistication of modern cars there are only 3 left now. The #1 is in Taiwan. (Maybe that's why China wants Taiwan so badly)
ReplyDeleteSo new car buying is almost an auction now. Supply and demand.
As for the USA making a chip factory, that'd take 3-5 years to happen with a productive lifespan of 5-8 years before technological advances make the factory obsolete and given the rate of socio-economic collapse it's not worth it.
All the members of congress piling money into it just blew their dough.
You mean supply and demand have direct effects on pricing? That can’t be true! Does AOC know about this incredible new economic discovery? Sounds like a buncha free market capitalist hooey....
ReplyDeleteI read somewhere that it's so bad, rental car companies have buyers going out to buy used cars, since not enough new ones are being manufactured, thanks to the chip shortage.
ReplyDeleteAnyone else old enough to remember normally-aspirated carburetors, and mechanical distributors needing feeler gauges to set the point gap, and cable-driven speedometers and odometers, and all that pre-computer stuff? Man, those old dinosaurs are looking pretty dependable right now, aren't they?
ReplyDeleteSomewhere in my rollaway toolbox lay a timing light and a dwell meter. Both are high quality and both are chromed steel housings, but I can't for the life of me remember what brand they are. I need to find and fondle them and thank them for the memories.
DeleteGood, simple, pre-smog times.
It has been really fun for me to watch my 27 year old son learn all about pre computer ignition and carburation as he raised a 1981 Honda CB 750 (4 carbs) from the dead. Just recently he came over to the house and it wasn't running right. He got a ride back to his place to get his bike tools including timing light, carb synchronizer, and compression tester. He trouble shot it down to a bad spark plug and had it up and running in a few minutes. True conservation keeps vehicles out of landfills and junkyards and keeps them running. Fake conservation uses the horrific environmental issues around the production and use of electric vehicles.
DeleteI used to could set points. Good on your son Mikey.
DeleteAnd here I sit with my 85 Chev C10 and my 82 Dodge D100.......
ReplyDeleteMy '03 Silverado Classic is worth more now than it was five years ago. Even at 263k, I think I'll hold on to it.
ReplyDeleteGotta love my 1997 Cheyenne 1500 with 200K miles, my 2003 Tahoe Z71 with 240K, and my 2017 Silverado 2500 HD Duramax High Country and no car payment. It's even worse with boats these days.
ReplyDeleteThis was the real intent of oblowme' and dementia joe's "Cash for Clunkers" scheme.
ReplyDeleteYup, wife's 04 Denali at 251k is looking like I'll just rebuild major components as needed instead of buying a replacement.
ReplyDeleteAnd Flea Lord, I used to be in such a hurry to move from carbs to FI, but now I want to go back! New trucks are damn impressive, but the old trucks just keep looking better and better...
First week in May I got a quote for my 2017 VW from CarMax that was better than the Blue Book price. When I went back a week later they raised the offer by $2000. Needless to say I was very pleased.
ReplyDelete2003, we converted a 1997 Ford CF8000 commercial truck to our concept of an ExpeditionVehicle.
ReplyDeleteCummins 8.3 mechanical.
Nearly two decades of full-time live-aboard.
.
I was offered us$95,000 for it plus the toy-hauler I built on a commercial trailer.
Not yet...
Yeah, this has been going on since around June of 2020. A lot of new car dealers have gone to no haggle pricing. They aren't starting high and negotiating down, they're mostly going with NADA or KBB retail pricing, and that's it. And some of those prices are almost at new. I literally sold a guy a new SUV that was only a bit higher than a used one. It's crazy. We just can't get that many used, and auction values are being bid up way too high.
ReplyDeletewife drives a 03 4runner. My truck is a 96 F350 7.3 which I will never get rid of even though I could probably get 15000 for it which is double what I paid for it in 09. For backup we have 93 corolla. New trucks are nice but the price- just a non starter for us.
ReplyDelete