CENTRE COUNTY, Pa. (WTAJ) — As consumers across the country look to purchase cars, the supply is struggling to keep up, causing prices to surge for new and pre-owned vehicles.
People are rushing to dealerships due to a combination of pandemic-related events, such as buying cars to avoid taking public transportation. Plus, with more stimulus money and recent tax returns, consumers have some extra cash in their pockets.
“This last year and a half actually has been very, very crazy,” said Matt Mallery, sales manager for Stuckey Automotive. Adding, “I’ve been doing this for 20 years.”
Stuckey Mitsubishi in State College stocks about 150 new cars and between 80 and 110 pre-owned cars.
“However, due to the high demand right now of pre-owned cars, we are down to about 75,” said Mallery.
Mallery said he wasn’t sure what to expect for car sales one year ago.
“Low and behold, demand was so high that we could barely keep inventory.”
Stuckey’s says they looked into the trends and were able to purchase more cars ahead of time, keeping prices lower for their business and consumers.
However, not all manufacturers are experiencing this. The Associated Press reports average price of a used vehicle surged nearly 14% since January of 2020, to over $23,000. New car prices surged about 6%.
They also report many auto factories shutting down, with Ford, General Motors, Fiat Chrysler (now Stellantis), Volkswagen and Honda seemingly hit the hardest.
With a global semiconductor shortage, Ford even announced some F-150’s will be built without all of their parts.
Additionally, there aren’t enough chips to finish building high tech cars. Experts say they haven’t seen this serious of a chip shortage in nearly 30 years.
For buyers, this means you may have trouble finding certain brands of car with the latest technology and should expect to pay more.