Do You Own A Used Car? If So It Is Time To Sell

I was just speaking with a guy who is a mechanic and in his spare time, he buys cars in not the best mechanical shape and completely overhauls them then sells them.  In fact, I was a person who bought one of those cars for one of my children and after 8 years it is still going.

He informed me that today is a great time to sell a used car, people and used dealerships are getting top dollar for them due to the worldwide semiconductor chip shortage.

Now I just read an article in the Washington Examiner that:

“The average cost of a used car hit a record of $25,463 in April, approximately $2,800 more than the price paid by consumers during the same month last year, according to car research firm J.D. Power.”

This is the first time that the average price of a used vehicle has surpassed the $25,000 level.

We then were informed via the car-selling website TrueCar that used-car sales surpassed 3.4 million vehicles last month.  That was a 58% increase over April of 2020.

What is causing the worldwide semiconductor chip shortage?  Good question I found an article in the UK Guardian that stated:

Initially the problem was only a temporary delay in supplies as factories shut down when the coronavirus pandemic first hit.

However, although production is back to normal, a new surge in demand driven by changing habits fueled by the pandemic means that it is now reaching crisis point.

Car manufacturers investing in tech-heavy electric vehicles, the boom in sales of TVs and home computers and launch of new games consoles and 5G-enabled mobile phones have all driven demand.”

If you have a used car and do not need to buy one to replace it, now is the time to do so.