A shortage of computer chips means you could be paying higher prices for used cars.
Let’s connect the dots.
The used car market was already pretty hot thanks to the pandemic. When lockdowns went into effect, carmakers were forced to temporarily halt production, creating a shortage of new vehicles.
It also meant that chip makers sent their supplies to other customers.
However, now that automakers are back up and running, the supply of semiconductor chips is way down, according to The Wall Street Journal.
It's a real problem for carmakers.
Technology in vehicles has increased in recent years, causing a huge demand for chips. Modern cars require a large amount of processing power for everything from infotainment system to safety alerts. It’s also not like no one else needs those computer chips; they are used in a wide array of consumer electronic products.
All this has forced temporary production shutdowns of everything from Ford F-series pickups to the Chevy Malibu.
Wholesale used vehicle prices were up nearly 4 percent in the first half of March, and according to Edmunds prices for consumers are following suit.
The only good news: dealers should be paying more for trade-ins.