Supply issues take car buying in Arizona down a rocky road

Nov 12, 2021, 11:45 AM | Updated: 1:31 pm
(AP Photo/David Zalubowski, File)...
(AP Photo/David Zalubowski, File)
(AP Photo/David Zalubowski, File)

PHOENIX – If you’re in the market for a new or used car in Arizona, good luck finding one.

Global supply chain issues are making it tough for people to find a new vehicle and automakers are struggling to find semiconductor chips and other parts for their cars, trucks and SUVs.

That is trickling down locally.

“If you need a new car or even a used car, they’re very hard to come by. … It’s a supply issue that is going to take a while to resolve,” Valley economist Elliott Pollack of Elliott D. Pollack and Company told KTAR News 92.3 FM.

Things aren’t that much better with preowned cars, either. Used vehicle prices increased 38% over the last year, according to the Used Vehicle Value Index.

“There aren’t very many used cars around because people aren’t trading in their cars to buy new cars,” Pollack said.

Analysts say that record-high consumer prices for vehicles — new and used, as well as rental cars — will extend into next year and might not fall back toward earth until 2023.

“We’re far ahead of the rest of the world in terms of controlling COVID, but a lot of the countries that we get our supplies from are still having trouble keeping their factories open and running at full capacity,” Pollack said.

Ports and freight yards haven’t been able to handle the traffic that resumed after COVID-related restrictions were lifted. That has snarled global supply chains.

Even if auto production were somehow to immediately regain its highest-ever level for vehicles sold in the U.S., it would take more than a year to achieve a more normal 60-day supply of vehicles and for prices to head down, New York consulting firm Alix Partners has calculated.

“When you do get the supply chain starting to work, factories are going to have to run at full capacity for quite a while, not only to meet pent-up demand, but the level of inventories at the wholesale and retail is way down,” Pollack said.

“You’re going to have to fill the inventory hole,” he said.

The Associated Press contributed to this report.

We want to hear from you.

Have a story idea or tip? Pass it along to the KTAR News team here.

Arizona News

(Valley Metro Photo)...
SuElen Rivera

Valley Metro riders can now pay fares through mobile app

Just in time for the big game, Valley Metro riders have a new way of paying for fares, the company announced Wednesday.
11 hours ago
Fall Out Boy performs at Xcel Energy Center on Dec. 4, 2017, in St Paul, Minnesota. (Photo by Adam ...
Kevin Stone

Fall Out Boy returning to Phoenix this summer for 1st time in 6 years

Fall Out Boy is returning to Phoenix for the first time in six years this summer when the pop punkers hit the road to support a new album.
11 hours ago
(NPS Photo/Neal Herbert)...

Grand Canyon National Park opens self-guided river trip lottery

Grand Canyon National Park has begun accepting applications for 2024 self-guided river raft trip permits on the Colorado River.
11 hours ago
(Facebook Photo/Donald Babiano)...
Griselda Zetino

Empty seats: COVID pandemic not the only reason for spike in chronic absenteeism in Arizona

The number of Arizona students missing school has skyrocketed over the last few years. The COVID pandemic isn’t the only reason.
11 hours ago
(Facebook Photo/Over Easy Restaurant)...

Breakfast restaurant Over Easy plans to open 3 Valley locations this year

Breakfast and brunch restaurant Over Easy announced plans to open three new locations across the Valley this year.
11 hours ago
(Surveillance footage video provided by the Glendale Police Department)...
SuElen Rivera

Glendale police seek public’s help identifying suspect in Circle K robbery

Glendale police are asking the public's help in identifying a suspect involved in a robbery in December, authorities said.
11 hours ago

Sponsored Articles

Day & Night Air Conditioning, Heating and Plumbing

Company looking for oldest air conditioner and wants to reward homeowner with new one

Does your air conditioner make weird noises or a burning smell when it starts? If so, you may be due for an AC unit replacement.
(Desert Institute for Spine Care photo)...

Why DISC is world renowned for back and neck pain treatments

Fifty percent of Americans and 90% of people at least 50 years old have some level of degenerative disc disease.
Quantum Fiber

How high-speed fiber internet can improve everyday life

Quantum Fiber supplies unlimited data with speeds up to 940 mbps, enough to share 4K videos with coworkers 20 times faster than a cable.
Supply issues take car buying in Arizona down a rocky road