METAIRIE, La. — You can add new and used cars to the growing list of shortages during this pandemic. At Lakeside Toyota in Metairie, they’re not lacking in business. What is lacking is their normal level of cars.
On Thursday, there were about 110 new vehicles on the lot. Before the pandemic upended supply chains and global car production, that number used to be between 300 and 500. That’s leading to customers asking questions.
“Why can’t I get that vehicle? What do you mean I can’t order it the way that I want? In some cases, they can’t right now,” said Troy Campise.
Campise has been selling cars for almost 30 years. He said the last time he saw this kind of shortage of new and used cars was in the wake of Hurricane Katrina. Right now, there’s a cascading effect, and it starts with the lack of available semiconductor chips. Along with many other devices, those chips are needed for those hi-tech features in modern cars, which seem to be computers on wheels nowadays.
“The demand for the chips is outrunning supply right now. That’s what is slowing down our inventory, not just for Toyota, but for all the domestics, everybody,” said Campise.
Throw in a huge demand for cars as the country tries to emerge from the COVID-19 pandemic and the inventory of new cars shrinks. Naturally, people start looking for used cars, but Campise said that pool is getting shallow too and prices are getting steeper.
“Just finding used cars, if you don’t trade for them, it’s impossible to get them at auction,” said Campise.
According to the Bureau of Labor Statistics, the average price of a used car jumped 10-percent in the month of April alone. That’s the biggest jump in used car prices since 1953. The average price of a used car is around $25,500 according to J.D. Power. That is the highest average price the research firm has ever recorded for used cars. If you’re thinking of selling your used car, Campise said it a seller’s market.
“This a good time to sell a used car, as long as you don’t need another one,” said Campise.
Considering that dilemma, you could get some TLC for your car and hold onto it. But you may face some longer waits if you’re going that route. Many garages are seeing more people with the same idea.