WEST MELBOURNE, Florida – Looking to buy a new car? Good luck.
A supply chain problem, including computer chips and other parts, means very little new leaves the factory.
What would you like to know
- The average list price of a used vehicle hits a record high of $ 25,829 in August
- As fewer and fewer new cars arrive on consignments, customers are looking for used cars and driving up prices
- Used car prices set to remain high until 2025
Don Poussard, owner of Harbor City Auto Sales in West Melbourne, spends a lot of time on his land. That’s a lot that’s half full these days.
“We’re down 50% on inventory,” Poussard said. “It’s just that they’re not over there.”
There are also very few used cars available. The current global shortage of computer chips is impacting the ability of automakers to manufacture new vehicles.
“So their parking lots are empty, so they can’t buy new cars, so they go to used cars,” Poussard explained.
Poussard says he’s never seen it like this before in 15 years of business.
He says new car dealers normally have 200 or 300 new vehicles for sale.
“They have 14, seven or 10, you can roller skate in the parking lot,” he said.
Used cars three to four years old, with several thousand kilometers driven, are sold for what they were new.
Car rental companies that rent new cars are obligated to buy and lease used vehicles.
Poussard says car auctions would normally sell 40 to 50% of their inventory on auction days.
Right now, they are flying off lots at a whopping 80-90% rate.
“It’s’ chip-aggeddon,” Poussard said.