JACKSONVILLE, Fla. — Car dealerships along the First Coast are feeling the strain of a national shortage of vehicle microchips that have forced automakers to slow down production of new cars.
With some dealers quoting wait times of 18 to 19 weeks for a new car order, it's easy to see why fewer people are trading in their used cars.
Less used cars on the market means a higher trade-in values. Which is good for those looking to get rid of their ride, but bad for smaller dealerships struggling to remain competitive.
Ayman Elshamy is the Manager of Carisma Auto Trade on Atlantic Boulevard, a dealership that exclusively deals with used cars.
He says before the pandemic, he had no problem purchasing used cars at local auctions. Now he's lucky if he walks away with one.
"It's very hard to get a used car right now," says Elshamy. "...you go to the auction and some cars are sold in the auction more than the retail price. Not the wholesale price. Sometimes we go to the auction and all what we can get is one or two cars, it's by far overpriced."
New car values have skyrocketed in recent months due to the shortage of vehicle chips, and it's trickle-down effect. According to caranddriver.com, nationally, used car prices are currently up an average of 14 percent compared to the spring of 2020.
"A shortage in components means they can't produce new cars," Elshamy says. "People can't buy new cars, so they don't trade in their used car, which is how I get the used car, by people trading it in. That's how the circle is all related."
Experts say that the chip shortage will likely remain in place until the end of 2022 but Elshamy is remaining hopeful.
"By the end of the year, the prices will come back again to normal... hopefully we can survive that," he says.
Carisma Auto Trade is located at 7950 Atlantic Boulevard.