Get ready to pay higher prices for used cars.
A dearth of semiconductor chip production is cramping new-vehicle production , limiting the availability of certain models in the coming months and threatening to raise used-car prices as buyers hunt for alternatives.
The shortages of chips, a result of the pandemic, are rippling through the automotive industry, undercutting production at General Motors, Ford, Honda, Toyota and other companies.
The upshot is that the used-car market, in particular, is poised for significant disruption – likely in the form of higher prices.
A similar thing happened in 2020 when automakers were forced to temporarily stop the production of most new vehicles due to COVID-19 lockdowns. That drove more buyers into the used market, increasing prices.
“The used-car market went haywire,” says Ed Kim, vice president of industry analysis for AutoPacific. “I’m expecting to see more of the same thing year, but for