Dealerships say demand for used cars is increasing amid slow production of new cars
Dealerships say demand for used cars is increasing amid a chip shortage that is causing a slowdown in the production of new cars.
Used vehicles at Crossroad Motors in Manville are selling faster than ever before, and workers say it's been hard to keep up with demand.
According to the U.S. Bureau of Labor Statistics, used cars and trucks are selling for 40% more this year compared to last year. Prices for new cars are on the rise too -- up by 12% since last year.
Employees say auction houses are bringing in half the inventory they used to, so it’s been a challenge to stock the lot. They say even cars that are over 12 years old are selling for competitive prices.
"People are willing to pay,” says Hani Boutros. “They're willing to pay over sticker price, and I've been getting calls from other states. A lot of my customers are actually from Delaware, Virginia - and yesterday I sold the car actually to a guy who drove two hours and a half from Pennsylvania."
When can we expect prices to return to normal? Dealerships say it could take a while to work out the kink in the supply chain.