If you’ve been car shopping lately, you may be surprised at the rise in prices. In fact, average car prices are over 20% higher this year than they were this time last year. Why are car prices going up? Are South Elgin dealers just getting greedy? No. The reason we see both new and used car prices going up has to do with a worldwide shortage on computer chips. What does that have to do with car prices? Let’s take a look.
Computer chips, also known as semiconductors, are used in all kinds of devices, ranging from smartphones to washing machines. They are also used in the computers that are installed in vehicles. Due to a complex combination of several global economic factors that we won’t get into, chip manufactures are currently unable to meet demand. This has caused a slowdown in automobile manufacturing, meaning automakers can’t keep up with demand, either. And, as they teach in Business 101, when demand exceeds supply, prices go up. The good news is that you’ll be able to get a deal when you take advantage of our new car specials.
You may have noticed used car prices going up around Schaumburg, as well. But, why? Why would used car prices be impacted by issues in new car manufacturing? The answer is very simple. Since new cars are less available, more and more consumers are buying used cars. This means that demand is outpacing supply for used cars as well. This is why we see used car prices going up. But that’s why you should check out our pre-owned car specials to make sure you’re getting the best deal. Also, this is a great time to sell or trade in your car to a dealer, since you can likely get top-dollar for it.
There are ways to beat the chip shortage. For instance, you can take advantage of our offers and incentives to help you save on your next vehicle. And don’t forget to check back often to see what monthly specials we have running. We’re just down the road from Palatine. So, drop by or contact us today!
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