Students looking to purchase a car in the next year could find that the price on a used car is out of reach because of a new car shortage.
With the release of the COVID-19 vaccine, people are beginning to get out of their houses and are going to buy cars, but dealerships have recently experienced a decrease in the number of cars they would get each month. This could directly impact Watauga students who find themselves in need of a car for work or school.
“This all started spring of 2021,” stated John Campbell of Toyota Subaru. “We were told this would all be over by fall but it has just gotten worse. Right now it looks like it may be done sometime next year but I have no clue when it will get better.”
The reason for the shortage lies in production and shipping issues both international and domestic.
“The issue is the number of chips being made and shipped for cars,” Campbell said. “When COVID started the orders for the car chips declined and less of the chips were produced, and the chips were being made for TVs and other electronics and not as much for cars. Now that COVID has calmed down people are going out and trying to buy cars and since the chips weren’t being made and now the demand is up and companies don’t have the supplies to make the cars.”
This has created real issues for dealerships who are ready to sell cars to eager customers.
“We are still getting cars just in much lower quantities than before,” Campbell said. “We are getting only about 30 cars a month whereas before we were getting 80-90 cars a month.”
With fewer cars coming at the prices of new and used cars have increased. Campbell explains that prices for new cars have gone up about 5-10% but used cars have gone up much more, about $2000-3000.
The shortage of cars has led to the dealerships taking some hits.
“We have less to offer to customers and our profits have gone down, but we have been through this before and we will get through this as well,” Campbell said.
This shortage has left many students in a bad position. Senior Abby Graham is in need of a car and she has experienced many troubles trying to find one.
“It’s a mess,” Graham said. “About three months ago my car was totaled in a wreck and I have been looking for a car since then, and the prices keep going up every single day.”
Watauga students should expect that this shortage is widespread and traveling to a different county might not fix the issue.
“I went down to Johnson City to look for a car and I was sure I was going to get one, but when I tried to negotiate the price the best he could do was fifty dollars of a ten thousand dollar car, which makes no difference at all,” Graham said. “The salesmen said he wanted to lower it more but then he wouldn’t make a profit.”
Student drivers and their families should make sure to price check before they purchase a used car, assuming it will be a bargain.
“The price for a used car when COVID started was $6000 for a decent low mileage car and now it’s $10,000,” Campbell said. “You can buy a new car for the price of a used one at this point.”
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