Used-car prices soar as new-car inflation eases
Chip shortage strangles new-car supply and drives more buyers into pre-owned vehicles
Used-car prices in SA have soared in the past year while new-car price inflation has slowed, as a result of increased consumer demand for pre-owned vehicles.
The demand is being driven by consumers trading down, and by the stock scarcity of new vehicles due to the global computer chip shortage. Motor companies have cut vehicle production by more than 6-million units so far in 2021 because of a shortage of semiconductor microchips and the figure for the full year could reach nearly 8-million...