There has never been a better time to sell a used car. Prices are increasing all the time, there is more demand than supply and if you’re selling a good quality used car, you’re in a fantastic position.
Our St. Catharines explains how a chip shortage in another part of the world impacts the value of your old car.
The term ‘chip shortage’ isn’t the most accurate. It’s actually a semiconductor shortage but as most of us, including me, have no idea what a semiconductor is or what it does, calling it a chip makes more sense.
Basically, a chip, or semiconductor is an essential part of modern cars. They are components essential for antilock brakes, reversing cameras, speed sensors, braking sensors, navigation, infotainment, some electronic power steering and a whole lot more.
And there’s a shortage of them.
A global shortage.
COVID and interruptions of the supply chain means the factories who manufacture semiconductors are running behind.
Delays in mining the raw materials that make the chips, shortages in drivers to haul the materials for refining, shortages in refineries, in trucking to ship raw ingredients to semiconductor factories, shortage on the production line in those factories and every step of the supply chain afterwards are all causing this shortage.
It isn’t just chips either. These delays impact food and other commodities too.
Semiconductors and car manufacture
Semiconductors are used everywhere. Most things electronic will use one or more semiconductors and as we are dependent on technology.
Automakers are just one industry out of many who are trying to buy as many chips as they can, but there’s a queue and production is still way behind schedule.
Ford alone said they are likely to be 1.1 million vehicles behind in production in 2021. Add all the other automakers who are experiencing similar things and you begin to see the big picture.
Automakers across the world are pausing products for a day or week here and there to reduce costs while waiting for those chips.
Without so many new cars being manufactured, the demand for used cars rises as people buy those instead.
Some people are keeping hold of their car for another year until new car production catches up. Which adds a shortage of used cars.
A shortage of used cars means those on the market become more valuable.
It also means anyone planning to sell a good quality used car can now get more for it than ever before. Sell your old car to a dealership and you’ll get very close to market price.
We can afford to pay more because the car is worth more and we want to pass that onto you.
If you have a spare car and want to make some money. Now is the time. If you have two cars but don’t really need them, now is the time to sell one!
Then, when it comes time to buy a new one, we can help you with that too!
For those of you who know that you have a challenging credit situation, please visit Dixie Auto Loans where we have a team of credit specialists ready to help you get approved for a car loan today!
For any questions or concerns, please don’t hesitate to contact us here!