Why Is There a Chip Shortage?

If you’re shopping for a reliable used vehicle at the moment, you’ve probably noticed that the prices of pre-owned cars are skyrocketing all over the country. One of the many effects of the COVID-19 pandemic is the global disruption of supply chains and purchasing patterns, making the buying and selling of cars a significantly more difficult process for the time being. With a reduction of new Toyota vehicles on the market, a 40% increase in the prices of new models from February 2020 to June 2021, and no signs of prices lowering soon, automotive industry experts speculate that used car prices will exceed new car prices for the foreseeable future. Find out why there is a chip shortage for cars below with the savvy finance team at Toyota of Whittier.

What is the Chip Shortage?

The COVID-19 pandemic caused wide scale automotive factory closures and a drastic slowdown in the production of new vehicles. Thus, there’s been a shortage of semiconductor chips being produced, a necessity of many Toyota vehicles. So, with a global automotive chip shortage, how has that affected used car inventories? Well, the patterns of the used car market are usually influenced by the behaviors of the new car market, and seeing as the inventory of new vehicles has diminished worldwide by 54% in the past two years, used vehicle prices have shot up. 

How to Deal with Global Automotive Chip Shortage

The prices of used cars should normalize in the El Monte region once new vehicles resume routine production again. Nevertheless, if you are currently shopping for used vehicles, keep in mind the following information to get a quality pre-owned car without going over budget: 

• Conduct Thorough Research: Take advantage of appraisal sites like Edmunds.com and Kelley Blue Books to ascertain which used cars have the longest lifespan.
• Keep Your Options Open: Be flexible when it comes to the used cars that best suit your needs. Limiting your search to a specific model and trim will force you to compromise on a vehicle that’s pricier than you can currently afford.
• Review Vehicle History: Once you’ve found a used model that you are interested in, carefully review the vehicle history. Ideally, you want a vehicle that has a clean title and has been kept up to date on all scheduled maintenance. 

Browse Pre-Owned Models at Toyota of Whittier Today!

Now that you have a better idea of why there is a chip shortage and why used car prices are exceeding new car prices, contact Toyota of Whittier to find out how our used vehicle specials can help you save on a high-quality pre-owned Toyota car, truck, or SUV. We want to put you behind the wheel of a used car you can afford, so visit us in Whittier today!