PEORIA, Ill. (WMBD) — The value of some older vehicles could be going up.
Some car dealerships in Central Illinois are low on inventory. Madison Green, a partner at Green Chevy and Ford in Peoria said it’s a unique experience. Typically the dealer has about 200 new cars in stock, but right now they have four.
It’s partially due to a shortage of computer chips needed for new cars, she said. This is driving up the demand for used cars, too.
“Used car prices, if they are higher, trades are higher,” said Green. “Same as if used car prices were lower, the trades are lower. So they are kind of hand-in-hand with each other.”
Due to the chip shortage, new cars are flying off the lots, which is turning people’s eyes to used cars. Because of this, Green said used car values could be appreciating — not depreciating.
“If you bought a vehicle back in, let’s say 2018 for example, the price of that vehicle could be what your sticker price was three years ago. Right now, we’re trading people out so fast,” said Green.
Industry leaders said the chip shortage could end by the fourth quarter of this year.