COLORADO SPRINGS, Colo. (KKTV) -The car industry has been hit hard during the pandemic with supply chain problems and a micro-chip shortage. This begs the question, is now a good time to buy a car?
Car expert Tim Jackson, CEO of Colorado Automobile Dealers Association is giving us some insight.
He says despite the pandemic, people are buying cars. The Colorado Automobile Dealers Association recently released a new car outlook report for the state. It says new vehicle registrations in Colorado were up ten percent last year from 2020.
Jackson says at dealerships across Colorado, cars aren’t staying on the lot very long. He says this is due to an inventory shortage and a high demand.
“And some of our dealers are completely out of new cars and really low on used cars,” said Jackson.
Right now, Jackson says there is an increased demand for electrified models, that includes hybrids, plug-in hybrids and battery electric vehicles.
If you’re looking to buy, Jackson says a new car may be your best bet. If you can find one.
“Used car prices have been up 30 to 50 percent and that’s on, even at wholesale auctions,” said Jackson.
He suggests doing a trade if you have a newer model vehicle you want to upgrade.
“It’s now a good time to trade if they are trading that for a new car because you’ll get maximum value,” said Jackson.
Or you may want to wait.
“Otherwise, if they don’t have a late model trade and they can wait, it might be better later this year or early next year to buy,” said Jackson.
Through this pandemic, car experts say they are staying optimistic. They estimate that nearly 20 percent of new vehicle purchases have been put on hold since the pandemic started. They anticipate those who’ve waited will buy a new car in the next few years giving the market a much needed boost.
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