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.