New car shortage causes used car shortage
Manufacturing held up by lack of semiconductor chips
NEW ORLEANS (WVUE) - You may have noticed recently the shortage of new cars due to a worldwide shortage of a micro-chip needed to manufacture many products.
The dent in new car inventory is now trickling down to used car stock.
Used car prices have shot up an average of nearly $4,000 in New Orleans according to auto research firm and search engine, iSeeCars.com’s latest analysis of over 1.2 million used car sales in April 2021.
“The vehicles are available but they’re just selling quickly because of the new car vehicle shortages,” Noah Muller with LaMarque Motor in Kenner said.
Muller says they aren’t seeing major price increases or struggling to fill inventory, but they have seen a difference.
“The trade-in values have gone up significantly,” Muller said.
So it may seem like a good time to upgrade, but many drivers aren’t.
A lot of the used car dealerships in Metairie along North Causeway Boulevard all tell Fox 8 the same thing: it’s harder to get their hands on inventory because people aren’t willing to let their cars go.
“People want to hold on to it because they can’t replace it,” Sam Rantisi said.
The situation is a bit different for Rantisi at Metairie Motors.
“Buying cars has never been harder and the prices to go with it,” Rantisi said.
Rantisi says it’s supply and demand right now and without new cars to fill the demand many are turning to preowned or hanging on to what they got, so he has to find other routes like auctions for inventory.
“Thank God I have a partner and it’s his full-time job to buy cars all day long from six in the morning to seven or eight at night,” Rantisi said. “That’s all he does, buying cars. So, it’s still a challenge but he’s still able to get them.”
Rantisi says that inventory hasn’t proved easy to move either.
“To find the car we have to go California, New York, New Jersey, Miami, and add to the cost of the prices, the transportation, it’s almost doubled than a year ago or six months ago, and with the gas prices and no truck drivers,” Rantisi said.
Now Rantisi says he has to pay between $1000 to $1,500 dollars to get a car here and that just gets added to the cost.
“A $5,000 car is much easier to sell than a $10,000 car,” Rantisi said.
Like all things this past year, this semiconductor chip shortage was caused due to COVID halting a lot of production and shipping.
Experts in the tech industry predict the shortage to last into early 2022.
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