CHARLOTTE – One of the largest inflation rates comes from used cars. The price of a used car went up about 10% in April 2021, according to the Bureau of Labor Statistics. There are a few reasons for this, including a shortage of new cars due to low production in 2020. For new cars, there’s currently a worldwide semiconductor shortage causing production shortages in everything from PlayStation 5s to Ford F-150s.
Used cars, on the other hand, have been a hot commodity due to both uncertainty in the safety of public transit during a pandemic and road-tripping being one of the few kinds of vacations available last summer.
Fortunately, most experts expect this price hike to be temporary. Proper supplies of new cars will be back on the market soon enough, and those who purchase new cars are ultimately going to trade in or sell their current ride. There are also theories that as the world continues its gradual re-opening, many of those first-time car owners will once again put used cars back on the market.
Ultimately, if you’re looking for a car new or used, now really isn’t the time to buy, but don’t fret, it’s a temporary setback.
My best advice – try and buy from independent sellers for the time being. It is much easier to find a fair and negotiable price in the private market.
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