The demand for used cars has exploded and so have the prices.
Tom Patterson, the sales and marketing associate at Paya’s North in Colchester, said they see people looking for used cars every day.
“Used car sales are a little tough right now just because there is such a shortage of inventory, but the prices of available vehicles have gone up,” Patterson said.
Patterson said that over the past few months, the value of used cars has risen to between $ 3,000 and $ 6,000. At present, they only have 50 cars in the two locations.
“Usually we usually have double that,” Patterson said.
He believes several factors are contributing to the shortage of stocks.
“Every aspect of buying these vehicles and getting them installed here and everything that you have is just more expensive than usual,” Patterson said.
The dealership saw many families coming in for more spacious cars.
“We’ve sold a lot of midsize to large-sized vans and SUVs,” Patterson said.
They are not alone. Carter’s Cars in South Burlington is experiencing the same shortages.
“New car dealers are getting a fraction of what they would normally get for their inventory, so there is less trade available,” said Kevin Munroe, general manager of Carter’s Cars.
Munroe said the pandemic caused a shortage of chips among new automakers as factories were closed.
“It has a ripple effect in the used car market that drives up prices,” Munroe said.
Typically, they have 120 used vehicles in the field at a time. “And we’re struggling to keep around 70,” Munroe said.
Munroe said there is a huge demand for inexpensive vehicles.
“Vehicles that cost $ 15,000 primarily for families, college kids, people going to and from work,” Munroe said.