Used car prices have been going up due to a microchip shortage

Published: Jul. 9, 2021 at 10:24 AM EDT
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PRESQUE ISLE, Maine (WAGM) -Used car prices have been going up due to a microchip shortage.  News source 8′s Megan Cole has more on why this shortage is affecting used vehicles prices.

Microchips are in many items that we use every day.

“Microchips are used in everything. They’re in your phones, they’re in your microwave.  If they’re in our vehicles, they run the cameras, the radios the collision sensors.  Just about everything you can think of and when COVID happened, a lot of people were working from home and that drove up the demand for consumer electronics and so the manufacturers of these microchips needed to meet that demand but also saw a demand in vehicle purchases as well.”

Which has caused a vehicle shortage, causing used car prices go up.

“As consumers look at this it’s somewhat of a negative in that you know the prices are going up but it’s also a positive because consumers are getting more for their trade in than they ever have.”

Even with the shortage of new vehicles, Carroll says he isn’t concerned as they are receiving shipments every week.

“Obviously our new sales drive our used sales that’s how we get trade ins and also buying off the street so you know it’s a crazy time but we’re not the only ones experiencing it so it’s happening to the whole market and one of the saving graces and one of the things we’ve been really lucky especially in the county is our customers are really understanding. "

Carroll says he expects the market as a whole to stay strong for the next 12 to 18 months.

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