WEST MELBOURNE, Fla. — Looking to buy a new car? Good luck.
A supply chain problem, including computers chips and other parts, means very few new ones are coming from the factory.
What You Need To Know
- The average list price for a pre-owned vehicle hit a record high of $25,829 in August
- As fewer new cars reach lots, customers are looking for used cars and driving up prices
- Used car prices are expected to stay high through 2025
Don Poussard, owner of Harbor City Auto Sales in West Melbourne, spends a lot of his time on his lot, and it's one that's half full these days.
"We're down 50% on the inventory," he said. "It's just, they're not out there."
There are very few used cars available too. The ongoing global computer chip shortage is impacting automakers' ability to manufacture new vehicles.
"So their parking lots are empty, so they can't buy new cars, so they are going to used cars," Poussard said, adding that he's never seen it like this in 15 years of business.
He says new car dealers normally have 200 or 300 new vehicles up for sale.
"They've got 14, seven or 10 — you can roller skate in the parking lot," he said.
Because of the shortage of new cars, used ones that are 3 to 4 years old, with several thousand miles on them, are getting sold for what they were new.
Rental car companies who rent new cars, are being forced to buy and rent out used vehicles.
Poussard said car auctions would normally sell 40% to 50% of their inventory on auction days.
Right now, they are flying off the lots at a whopping 80% to 90%.
"It's 'chip-aggeddon," Poussard said.