If you’re looking to buy a car this summer, be prepared for sticker shock, dealers say demand is high, but supply is low. According to Black Book used car prices have climbed 30% in the past year. Louisiana Auto Dealers President, Will Green said disruption in the supply chain is one reason car lots are short on vehicles.
“Coupled with a higher demand, in interest in people buying vehicles and that’s equaled a decline in the amount of new inventory out there,” said Green.
Green said production was disrupted during the pandemic with a computer chip made overseas, it’s those chips that function as the brain of vehicles.
With pent-up demand to travel this summer, but yet a hesitancy to fly or use public transportation, vehicle demand is even higher. Green said since dealers are having a hard time filling the lot with new cars, used vehicles are also a hot commodity and dealers tell him…
“We are paying more for customers’ trade-ins than we ever have before,” said Green.
So, if you have a used car that you do not need, this might be the perfect time to sell. But Green said if you need a vehicle, be patient but also know that most dealers have a way of finding the right car for you.
“I will tell you they don’t stay on the lot long when they get there, but there are tools at the dealers’ fingertips and if customers need a vehicle there’s one out there for them,” said Green.
Green expects production to return back to normal soon and car lots to look like they did pre-pandemic late fall.