Do you have a used car that you’ve been thinking about selling? Now is actually the best time to get rid of that car you barely use that’s just taking up space in the driveway. The global microchip shortage has resulted in crazy-low inventories at dealerships, leaving them desperate for cars to sell. The shortage is expected to continue throughout 2021, but it’s hard to say exactly how things will go.
What’s causing the shortage?
There are quite a lot of things that had to come together for this shortage of microchips to occur. Chips are becoming increasingly vital for everyday items from laptops to toothbrushes. New cars require several microchips to function. As the COVID-19 pandemic hit in early 2020, traveling and car sales slowed way down and the demand for laptops increased as more and more people started working from home. The biggest chip manufacturers shifted their focus from car chips to smart phone and laptop chips. Other things like weather and trade bans have had a huge impact as well. For more information on the shortage, check out this article.
A Seller’s Market
You should sell your car now because there is a high demand for cars and very low supply. Dealerships are paying a lot more for cars because they need something to sell, and because they’re able to sell them at a higher profit than usual. That being said, you should only sell your used car if you don’t need another one to replace it. It is NOT a buyer’s market. You’d be paying way more than you should and you likely won’t be able to find exactly what you’re looking for.
If you’re going to sell your car, consider getting it touched up first. Dealerships aren’t getting many new cars, if any, so they’re in desperate need of cars that look good! They may be willing to pay quite a bit more for a car without any chips or scratches. If you’re in LA or Orange county, make an appointment with us here and we’ll make your vehicle gleam!
On the other hand, if you have to buy a car right now, you might end up with something that doesn’t look quite as nice as you’d hoped. We can help you there, too!