The amount spent on new cars hit an all-time high this summer and prices for pre-owned cars increased by more than 30% annually, impacting many family-owned dealerships.
The amount spent on new cars hit an all-time high this summer and prices for pre-owned cars increased by more than 30% annually, impacting many family-owned dealerships.
leads there. if you are trying to find a new vehicle, you know prices are high, supply is scarce, part of the reason is that shortage we have been telling you about of a key electronic component. fox business correspondent lydia hu is at a car dealership in new jersey to explain. good evening, bret. the global shortage on semiconductor chips continues as industry groups say shipments and production are reaching an all-time high. the world few chip manufacturers located mostly overseas, struggle to keep up with surge in demand as supply chain bottlenecks delay shipment. tijuana is home to the leading chip producer and its tense relationship with china adds concern about america s ongoing access to chips. the shortage is pitting the auto industry against consumer electronics for the limited supply available. the car manufacturers are feeling the pinch with constrained car inventory,
reporter: she thought about used, but those cost almost as much as new the only saving grace was that her trade-in went for $1500 more than she planned i was happy about that because it has like 100,000 miles so it was a significantly used car. reporter: the pandemic combined with a global microchip shortage has slowed new car production now used cars are in such high demand, prices are skyrocketing president biden today. that s a real challenge. my administration is doing everything we can to address it. reporter: experts say they don t expect new car inventory to get back to normal until 2022 wholesale prices are now up 30% over last year, car dealers desperate for inventory are cold calling previous customers and offering drive-through appraisals and top dollar if you have a car sitting in your driveway that you re not driving, you potentially are sitting on a gold mine. reporter: experts say consider reaching out to different dealers if you re ready to sell. and if yo