How Does the Vehicle Shortage Affect Your Trade-In Value
WHY IS THERE A SHORTAGE?
If you are driving on Navarro or anywhere in town, you have probably noticed that the car lots almost look empty. Well here is the industry answer, a computer chip! Just another effect of the Coronavirus Pandemic. The pandemic caused a very high demand for electronics during the pandemic. Which led to chip manufacturers temporarily closing which also forced electronics manufacturers to temporarily close factories. An ensuing computer chip shortage slowed the production of most vehicles. It's hard to believe that one of a vehicle's smallest components is keeping them from being produced.
IS NOW A GOOD TIME TO TRADE IN YOUR VEHICLE?
The answer is a resounding YES! I spoke with Troy at Victory and he said if you are looking at buying in the next few months, now is the time. Right now, because of the vehicle shortage, dealers are paying out high values for trade-ins. Currently, Kelly Blue Book shows most used vehicle values are up between 5 and 10 percent. In some cases, that increase makes a used vehicle more valuable today than it was when it originally hit the lot.
WHAT IF I AM LOOKING FOR A NEW VEHICLE?
Well if you drive past any of the dealerships in Victoria, you see almost empty lots, in some cases. Right now, you can take what's available. However, if you are looking for the more popular vehicle models, you might have the wait three to four months, Troy also adds. Right now it's pretty much a take what you can find kind of market.
According to Cisco CEO Chuck Robbins "We think we've got another six months to get through the short term. The providers are building out more capacity. And that'll get better and better over the next 12 to 18 months." As reported by FREEP.COM