Chip shortage raising prices for used cars

LANSING, Mich. (WILX) - If you’re shopping around for a used car at a smaller dealership, expect to shell out more money. That’s because larger dealerships are scooping up used cars as quickly as they can, as the chip shortage continues to shut down auto plants across the country.

The chip shortage plaguing the auto industry has small car dealerships paying the price, and that means you will too.

Jeffery Dice of Dice Auto Sales says the larger dealerships, who are well funded, are buying up all of the cars at the auto auctions to make up for a lack of inventory on their lots. As a result, independently owned operations are struggling to replenish their own.

Dice said, “When I go to the sale I try to buy 15 to 20 cars a week. Where those guys are buying 400 to 500 cars a week.”

Unfortunately, that means it’s forcing independent owners like Dice to pay more for a car.

“A ‘17 Chevy Cruise with 60k miles, that car is normally going for right around 11 to 12 thousand dollars,” Dice said. “Now, they’re like 17 to 18 thousand dollars. It’s almost the price of a brand new car.”

Dice says the issues surrounding the chip shortage aren’t going away anytime soon.

“I’ve heard from new car stores,” Dice said. “I have friends who own new car stores and they’re not even looking to get a normal shipment until the end of 2022. So, this is not going away anytime soon.”

He says his advice for buyers isn’t necessarily to wait to buy a car, but don’t pay top dollar for the car you really want for a while.

He said, “I would just buy one to get by until you can afford to get what you want.”

Copyright 2021 WILX. All rights reserved.

Subscribe to our News 10 newsletter and receive the latest local news and weather straight to your email every morning.