Auto prices on the rise during supply shortages

Local News

(WCIA) — If you’re looking to buy a car, be prepared for a bigger hit to your pocket.

Car dealerships across the country are dealing with limited inventory right now. That’s driving up prices on both new and used cars across all brands.

Car dealerships everywhere are looking at emptier lots. Data from J.D. Power says the average new car price before this problem was $37,000. It’s gone up 8% since then.

Wholesale prices for used cars at auctions shot up 26%.

Napleton Auto in Urbana says they faced inventory shortages in March of 2020. It then picked back up towards the end of the year, but now it’s heading back down.

“It would say we’re getting to a point where it’s going to be equal to or worse,” says Michael Spilotro, Manager at Napleton Auto.

“We would expect inventory to be lighter, but not able to refill. That’s what we’re running into right now. We can’t refill like we normally would heading into the busy season.”

He says this demand is coming at a hard time. There’s also a computer chip shortage shutting or slowing down production at auto plants across the world.

The manager at Napleton says given the situation, it’s important for dealerships to focus on local customers right now.

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