Strategies for Used Car Buyers and Sellers Amid Microchip Saga
In this period of rising used car prices, there are strategies both used car buyers and sellers can employ to get ahead of the competition. One way is to know the vehicles most affected by the chip shortage, which is the main reason for skyrocketing prices of both new and used vehicles.
The microchip shortage has affected the industry greatly that some auto manufacturers are building incomplete vehicles and storing them until the chips become available. Buyers need to be aware, too, that some automakers are removing several fuel efficiency and other features just to continue the production and sale of new cars. This makes the sale of later models of used cars even more popular if they are already equipped with these features.
Already in mid-May, Car and Driver referred to an Autoforecast report that indicated the microchip shortage caused Ford to drop 346,616 vehicles out of production and that General Motors limited its production total by 277,966 vehicles. Honda, Nissan, Subaru, Toyota, and Volkswagen lost between 20,000 and 46,000 units. Volvo had 1,287 vehicles impacted by the shortage. In mid-June Business World News indicated Autoforecast projects that up to 5.3 million cars and trucks ultimately could be affected worldwide.
Car and Driver said the Ford F-series experienced the biggest drop with 109,710 units pulled from production. Other models most affected by the chip shortage are the Jeep Cherokee, with 98,584 pulled from production; Chevrolet Equinox: 81,833; Chevrolet Malibu: 56,929; Ford Explorer: 46,766; Jeep Compass: 42,195; Ford Edge: 37,521; Ford Escape: 36,463; Ford Transit: 26,507; and Chrysler Voyager: 25,728.
It is a big loss to Ford, as the auto manufacturer has had to bow out of big events that showcase its vehicles. The company dropped out from Ford planned to bring several new vehicles, including a new F-150 and an all-electric Mustang, to the popularAll-Iowa Auto Show at the Iowa State Fairgrounds in June, but had to drop out of the show because the microchip disrupted production.
From the list of models impacted by the chip shortage, car buyers can glean which used models will be hard to find and more expensive to buy than others since there is a shortage of their new versions. On the other hand, owners of cars on this list that are thinking of selling their cars may be able to cash in on what many believe is a once-in-a-lifetime opportunity when their used vehicle may be worth more than new.
When in the market for a used car, stop by Carousel Preowned. CarouselPreowned serving Iowa City, Cedar Rapids, Davenport, North Liberty, Marion, and Coralville, IA, is proud to be an automotive leader in our community. We do our best to ensure your complete satisfaction every time you step into our car dealership. This is why we offer the widest selection of used and pre-owned cars, trucks, and SUVs and provide true ease of purchase in Iowa.