Local dealership owner says lack of semiconductors driving up price of used cars
By RACHEL MCCRARY, JAMES PAXSON
Click here for updates on this story
https://www.wnem.com/news/local-dealership-owner-says-lack-of-semiconductors-driving-up-price-of-used-cars/article_d3aa56e2-d5fd-11eb-bacd-c7d8faa21dfd.html?block_id=994426 (WNEM) — A shortage of semiconductors is wreaking havoc on the auto industry.
The integral piece is creating a lack of inventory at dealerships across the country, including mid-Michigan.
“As new vehicles are unavailable, people are shifting to the late model used cars,” said Chris Graff, the owner of Graff Chevrolet.
People looking to buy a car may have limited options right now. New car inventory is low and driving up the price of used cars.
Graff said they are not sure how long this issue will last.
“From what I’m reading, the used car values are kind of peaking right now. How long they will stay at that peak I think is going to be dependent upon how limited our new vehicle inventories are and as they’re building more, and the chips become more available. You know we will. We will see that change, but when that’s going to be, I guess I’m my crystal ball is a little foggy there,” Graff said.
Graff said the low inventory in Davison and across mid-Michigan is the result of a global semiconductor chip shortage.
“Even though we have eight vehicles in stock in one of our stores here in Davison right now, by the end of the month we will sell. Probably 180 would be my best guess. And so how do you do that? How do you sell 180 when you have eight in stock? Is that we are we are preselling vehicles,” Graff said.
Graff said the upside is people looking to sell their used car can get a lot more for it.
“We’ve people are able to take advantage of that very high. Used car values. Whether they’re coming out of a leaf and putting money in their pocket, or whether they’re trading in a vehicle that they own,” Graff said.
Please note: This content carries a strict local market embargo. If you share the same market as the contributor of this article, you may not use it on any platform.
