If you are in the market for a new or used car, it could be a while before you find what you are looking for, and when you do, be prepared to pay a lot more.
The problems are being caused by a computer chip shortage.
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Some new and used car lots that used to be packed full of inventory now have fewer cars and trucks to sell than ever before.
A tiny chip is making a huge impact. Computer microprocessors are in such short supply because of pandemic slowdowns that major automakers have idled some plants. That means demand for some used cars may be higher than ever before.
Scott Tanner is building a used car dealership, taking full advantage of a huge wave of demand because new cars are scarce and much more expensive than usual.
“You’re six to eight months from seeing it go back to even close to normal. So, the used car industry right now it is just unbelievable. It’s crazy,” said Tanner.
Elon Musk tweeted about the shortage affecting Tesla:
“Our biggest challenge is supply chain, especially microcontroller chips. Never seen anything like it.
“Fear of running out is causing every company to overorder -- like the toilet pager shortage, but at epic scale.”
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In Washington alone, the price of used cars has shot up 19.4% just in the last six months. That means buyers are paying an average of $4,600 more than they would have before.
“Some used cars are being sold for more than what they were selling for for brand new,” said Tanner.
And if you have a car to sell, you’re in demand too.
“Dealers used to advertise ‘Come see our inventory.’ Now, they’re advertising for (people) to come sell them (their) cars. That’s how much of a shortage we have right now,” said Tanner.
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