Used Car Prices Soar | KGET 17
BAKERSFIELD, Calif. (KGET) – If you buy a used car, NBC News says you could be paying 30% more now than what you would have paid at this time last year. Car dealers say it’s all about supply and demand because there are fewer vehicles on the market and they are getting more expensive day by day. The shortage erupted when many factories slowed production during the pandemic. The auto industry is also facing a shortage of tiny computer chips that control parts of your car, ranging from the engine to airbags … as demand for small electronics like phones and laptops has skyrocketed during the lockdown. pandemic.
“People are going back on the road and trying to buy a newer vehicle, but they can’t because the prices have gone up so ridiculously,” said Rene Cornejo, co-owner of Golden Valley Auto. “The supply is very limited, so they go into the used car market. “
17’s Moses Small asked why it is so expensive and difficult to find a new car.
“Profit margins are not what they used to be,” Cornejo said. “A lot of the dealers have stopped buying trucks all together… because you go to auction and they go for what they’re looking for in retail. Our prices have gone up at auction, so we have to put them a little higher. “
Buying a car doesn’t just cost more.
“Everything has increased,” Cornejo said. “Air conditioning work, something like that. On average, it would take between $ 500 and $ 1,000 to overhaul a vehicle. Now it would take an additional $ 500. This is where our profits start to decline.
Experts say now is a great time to sell your car, but if you’re looking for a deal in the parking lot… you might be better off going the slow lane and taking your time.