HONOLULU (KHON2) — Prices are skyrocketing on certain goods across the nation. Used cars are now giving buyers some sticker shock.
Experts say it is the perfect storm.
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An unforeseen increase in demand combined with a shortage of semiconductor chips impacted supply chains when car manufacturers were not producing as many vehicles, which led to a limited supply of cars to sell.
“That just means that we have more people trying to buy used cars so that’s putting pressure on used cars and that’s rising pressure on those,” said Cox Automotive for Kelley Blue Book and Auto Trade editor Matt Degen.
AUTOSOURCE owner Rima Braden said the used car market is up 25% since May.
“This is never going to happen again I don’t think, this is the once in at least a decade, maybe a lifetime.” Braden said.
He says some people could be seeing their vehicle as an investment, especially trucks.
“If someone has a 2017 Tacoma they probably bought it for about 30 grand when it was new, if they look it up today the blue book is over 30 thousand dollars. It’s just nutty.” Braden said.
So when will the surge stop? Experts say when production on new vehicles picks back up.
“The word I got from Nissan is they expect production to resume back to normal come August/September so by the end of the year we should be back to where we should be,” said Windward Nissan general manager Mark Caliri.
Those who are looking to buy now are advised to make sure to do some homework.
“Do your research,” Degen said. “will it be right for your family? There’s plenty of research to help you even before you step on the dealer lot.”