The ongoing vehicle inventory shortage caused by a global microchip shortage has left no shortage of hurdles for car shoppers to overcome. For many, it’s a toss-up between finding the right vehicle and being able to afford it. Amid the chip deficit and other COVID-related roadblocks, automakers had to slow or even cease production, causing a shortage of new vehicles, a shift in demand to used cars and a dramatic spike in used-car prices.
In May and June, the benchmark Used Vehicle Value Index from Manheim, a vehicle wholesaler, topped 200 for the first time. Values have tapered slightly since then but remain substantially above year-ago numbers.
Is any relief on the way for persistent — or desperate — used-car shoppers? Several signs point to a plateau in the current upward trajectory, but it’s unlikely prices will fall anytime soon to the levels seen before the shortage began.