Used car sales at a record high | Connecticut News

(WFSB) – If you’re looking for a new car, you might want to put the brakes on, used car sales are at an all-time high right now.

Car dealerships are running low on new car inventory right now.

Patrice Luoma, professor of entrepreneurship and strategy at Quinnipiac University, says there is no good end in sight.

If you’re looking for a used car, you might want to wait a bit.

“It’s a good time to sell a car, it’s not a good time to buy,” Luoma said.

According to the Department of Labor, used cars are up almost 40%.

John Rosen, assistant professor of economics at the University of New Haven, said: “If you trade in a used car, you get a much higher trade-in value than ever before.”

The Department of Labor says new car prices are also up, but only by 12%.

Luoma explained that some dealerships have a cap on how much they can raise the price of a new car. “Used car prices are going up because there is no official cap, for new cars the automakers have said we don’t want to see our dealers inflate the price of our cars relative to the price catalog.”

The reason used car sales are skyrocketing is due to the shortage of new cars in dealership showrooms.

Experts explain that when the pandemic started, many companies slowed production of new cars.

“What the auto industry has discovered is that they can’t turn this whole industry off and on again like a light switch,” Rosen said.

When the industry restarted production, experts said they were soon faced with supply chain issues and a global shortage of chips.

“Chipmakers actually have much larger customers than automakers. Phones, laptops, televisions and things like that,” Rosen said. “They may become investments, which was not the case before. Traditionally, the price would drop pretty quickly when you bought a car. This is not happening now because they are in short supply.

Experts say it may be some time before used car prices fall and new car inventory rises.

They estimate about one to two years.

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