Semi-conductor shortage having ripple effect on new and used car industry

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If you’re looking for a car, you will probably find new ones are an issue, making the costs of used cars skyrocket.

There is more than just a motor within your vehicle - it really is literally a computer on wheels.

And that's creating problems for buyers and sellers.

“We've supply chain problems, especially semiconductors,” said Scot Hall of SwapaLease.

Wireless audio components, together with the engine management system, HVAC system as well as your anti-lock brakes are simply a number of the features that depend on computer chips.

Right now, those semiconductors are an issue, forcing automakers around the world to cut back production.

“Whenever there are less new cars available, the demand remains for cars generally, so people start looking at used vehicles,” said Hall.

Which has pushed up charges for used cars - which is very good news if you are a seller and bad news if you're a buyer.

“Right now is a superb time to market a car or truck,” said Hall. “The caveat I would give consumers is you’re likely to need to replace it and that could possibly be difficult.”

The shortage does mean you might have to make concessions if you need to buy a fresh car just off the assembly line.

“If someone can put off that new vehicle purchase for a few months, that’s the very best recommendation from a consumer standpoint,” said Hall.

Should you be determined to have a factory new car, hit the internet and start searching.

“There are dealers out there with cars on their lots but still deals to be enjoyed, it just could possibly be more difficult to see them than in the past.” he said.

Experts believe the shortage of chips could last the rest of the year and into early 2022, meaning used car prices will remain high

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