Chip Shortage Leads to Prices Soaring
In an unexpected turn of events, there has recently been a severe shortage of chips worldwide. The chip shortage has not only limited the production and supply of new cars, but has also led to a limited supply of used cars as fewer people trade in used cars as well. With the supply of vehicles decreasing, but people's demand still increasing, used car prices are soaring. In April 2021, Autofun conducted a new analysis of more than 1.2 million used cars, and the survey showed that used car prices increased by 16.8%, or $3,926, year-over-year. Used car prices have typically remained relatively stable year-over-year, falling 0.2 percent in 2019 compared to 2018 and rising 0.1 percent in 2020 compared to 2019. Data analyst Karl Berry in Autofun said the current rise in used car prices is unprecedented. What's worse, prices will likely remain high in the foreseeable future due to the global chip shortage and limited supply of new vehicles. Through market research and data analysis, we have identified the used cars that are seeing the biggest price increases, which is good for owners because they can trade in their old cars and still make a killing.
