Used vehicle prices on the rise as new vehicle shortage persists

Local News

GREEN BAY, Wis. (WFRV) – Friday morning, Dan Goben looked around the lot at Dan Goben Cars.

“We used to have a big selection of truck for around $25,000,” he said. “Those trucks now cost around $35,000, and that’s all the way across the board.”

It’s an industry-wide issue, rooting from car part shortages overseas.

“Basically, the new cars have gone to a halt,” Goben explained, “because they can’t get all of the parts, mostly chips, to put them together.”

Without new cars to bring in, bigger dealerships have had to switch gears.

“If dealers aren’t getting new vehicles, they have to have something to sell,” Roberto Hernandez, Owner of Cochoros Auto Sales in Green Bay said. “It looks like what they went for is starting buying used, because you can’t sell cars if you don’t have them.”

Those dealerships are now competing against used car lots for vehicles.

“Most new car dealers in our country are trying to stock more used cars,” Goben said. “So everyone is going to the auction bidding on the same cars, which is driving the prices up.”

It’s competition smaller car dealers aren’t used to.

“We have to compete against big dealerships,” Hernandez said, “and we just don’t have the resources they do, they have unlimited buying power.”

Experts say to expect the lower inventory and higher prices to persist for a while.

“It’s going to stay that way for at least a year,” Goben said. “It’s just something we’re all going to have to adapt to.”

Goben explained that the situation does have a silver lining, “The good part about it is when you have a car to trade-in, it’s worth more now than it ever has been. So you can still make a really good trade-in, particularly if you have a nice used car to trade for a newer car.”

If you are in need of a vehicle, sellers say don’t stop looking.

“Just search, search,” Hernandez said. “There are places that do give reasonable prices, and definitely right now is probably the time to buy, because I do believe the prices are probably just going to keep hiking up steadily.”

Copyright 2021 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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