Used car prices skyrocket due to inventory shortage

SOUTH BEND, Ind. --- If you’re looking to trade in your car now’s the time to do it as used car values are increasing nationwide. The global microchip shortage is partially to blame for the increased demand, but not having enough cars on the lot is the biggest reason as more people jump into the pre-owned market.

“I felt like for what we were looking for in terms of used instead of new the inventory was a little bit limited," said customer Kristina Boling.

Here in Michiana sales agent Jaison Geren at Omari's in South Bned says the increase has made it difficult for dealers to keep up with the demand.

“The prices at the auction are right now roughly about 2,000 dollars higher than they would normally be and it’s been really difficult because now the book values are just finally starting to catch up with the pandemic issues," said Geren.

While the buyer’s perspective hasn't changed it has made it harder to find good deals compared to previous years.

“A lot of people coming in looking for that $5,000 car, good luck! Those $5,000 cars you’ll be lucky if it’s got a motor in it," said Geren.

At Omari’s they’ve still been able to bring in at least ten used cars per week to ensure customers have enough options to drive away with exactly what they were hoping for.

“We were able to get into a luxury SUV and so we’ve been very happy with it," said Boling.

Although they have been keeping up with inventory Omari’s says they are still looking for those who want to sell or trade in their cars.