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Read more: The processor shortage that made the PlayStation 5 and some cars harder to find was almost over - until a ship got stuck in the Suez Canal. Supply-chain issues have persisted throughout the pandemic, and factories shuttered for safety reasons need to crank back to life as demand steepens. That's due to some of the same factors impacting used and new cars. Chicken, diapers, corn, gas, furniture: The list of shortages goes on, and will likely only grow amid economic reopening.
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It may seem that everywhere you look, a new product is in a shortage. Why there are so many shortages, and which ones may pick up next New car prices are also likely to pick up, increasing by 1%. Cue a used-car boom, with the market heating up and trade-ins fetching higher prices.Īccording to UBS, prices on used cars may only climb in the coming months, due to a lag in wholesale to retail pricing. Even Elon Musk has said that Tesla's suffered from supply chain and semiconductor woes. But new cars are being hit by a computer chip shortage that's hitting the automotive industry hard.Īs Insider's Grace Kay reported, semiconductor shortages could cost automakers billions, and has already led to lower production rates for new cars. The economy is reopening, people are ready to spend money (perhaps from new stimulus checks), and they want cars - especially as more suburban areas boom with wealthy transplants. Used cars have been in high demand due to a few of the factors driving the shortages all over the American economy.
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It looks like prices may have risen by 8.2% to 9.3%. The latest commodity seeing a price squeeze amidst shortages and high demand is used cars.Ī note from UBS researchers led by Alan Detmeister found that not only did used-car prices climb in April, but the monthly price increase could be the largest in 68 years of tracking.