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It’s a strange time that we’re in – used cars are becoming much harder to source and prices are higher than ever.
There’s a simple explanation for it though – the shortage of the semi-conductor that is affecting the production of new cars as well as other electronic items.
The semi-conductor shortage began back in 2020 when the pandemic hit, with demand outweighing supply.
Since then, the situation hasn’t got any better, with recent natural factors getting in the way, including a winter storm in Texas and a fire in Japan, both putting the shortage back even further.
Alongside the delays with the production of the semi-conductor, freight and shipping costs have skyrocketed, meaning getting them to another country is more costly than ever.
More recently, Europe has seen a shortage in lorry drivers, mainly due to the pandemic and drivers having to self isolate, which has meant that getting goods to their final destination has been delayed.
This rolling affect means that there are fewer new cars coming on to the market, so people are likely to be holding on to their car for longer than they ordinarily would do.
Subsequently, consumers are switching their focus and looking to quality used cars instead, which means demand for used cars had gone up drastically.
According to Fleet News, the semi-conductor shortage is set to outlast the global covid pandemic and have a longer lasting affect on the automotive industry overall. It is estimated that the waiting times on new cars and vans is as long as 6 months.
A statement from the BBC suggests that the affects of the chip shortage could last for as long as 2 years before things start to improve.
The valuation tool on your website can be incredibly valuable to you. Not only is it a fantastic lead generator, but it can help you source quality used cars quickly.
The valuation tool provided by Autoweb Design is designed to be easy, seamless and provide an up-to-date valuation of a vehicle.
The valuation tool will gain as much information as possible from the customer, which often filters out those who are serious about selling versus those who aren’t.
This information can be used to provide quote that is honest based on the information provided.
Of course, you are free to re-evaluate the car based on the quality of the vehicle when the customer brings the car for a viewing. It is at this point that you can decide to offer more money or less depending on how much you want the vehicle.
By offering more for the car, you are more likely to convince the customer to part with their car rather than them holding out. This lucrative offer should be enough to sway them as they will know their car will depreciate in value if they don’t act quickly.
If you would like to discuss the valuation tool in more detail, speak to your account manager or a member of the sales team on 01757 211700 who would be happy to help get you set up.