Microchip shortage drives used car prices up

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LANSING, Mich. (WILX) – The microchip shortage isn’t just affecting new car sales, it’s driving used car prices up dramatically, causing grief to those looking to purchase a newer vehicle.

Lansing resident Heather Lyons has totaled her car and wants to buy a used car, but it’s been a struggle. She said it costs her $ 4,000 more to buy one this year compared to last year.

“It’s really bad. My car payment last time for a decent vehicle was something I could afford and this time it will be a worse vehicle for more than what I was paying before, ”Lyons said.

Motorcars of Lansing claims the prices are the highest they have seen in a long time.

“I have never seen such competitive and high prices in the 21 years that we have been in business,” said John Badawi, President of Motorcars Group.

Badawi with Motorcars says used car dealers pay more for cars because there are fewer options.

“Now they are resorting to block auctions, which has driven auction prices crazy,” Badawi said.

The community continues to face higher costs and fewer options as they search for their next car. Some say they continue to repair their current cars in hopes of saving money. Badawi told News 10 he was concerned the local small batches might fail.

“These big franchise stores will target and repurchase one, two types of new cars that just can’t be successful in a market without new cars. No one is profiting from chip shortages, no one is profiting from the lack of trade, ”Badawi said.

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