ARIZONA NEWS

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

Firefighting crews are battling the Riverside Fire north of Fountain Hills. (Tonto National Forest ...

KTAR.com

Bartlett Lake recreational areas north of Fountain Hills evacuated for Riverside Fire

The recreational areas near Bartlett Lake have been evacuated as firefighters battle the Riverside Fire north of Fountain Hills.

29 minutes ago

A 2-year-old boy died after he was found in a backyard jacuzzi Saturday. (Pixabay photo)...

KTAR.com

2-year-old boy found in west Phoenix jacuzzi dies

Detectives are investigating the death of a two-year-old boy who was found in a backyard jacuzzi on Saturday in west Phoenix.

2 hours ago

State's new budget a sore spot for attorney general - Here's why...

Serena O'Sullivan

Arizona AG ‘extremely disappointed’ with state budget cuts to opioid settlement funds

Arizona Attorney General Kris Mayes released a statement saying she is "extremely disappointed" with the state's new budget on Saturday.

3 hours ago

Bipartisan state budget of $16 billion passes in Arizona Legislature...

Associated Press

Arizona lawmakers pass bipartisan $16.1 billion budget, fix $1.4 billion deficit

Arizona lawmakers passed a $16.1 billion bipartisan state budget, which Gov. Hobbs negotiated with GOP leaders, on Saturday evening.

6 hours ago

Southbound Loop 101 on-ramp in Scottsdale to close (ADOT Photo)...

Bailey Leasure

Southbound Loop 101 on-ramp in Scottsdale to close for 2 months

 The southbound Loop 101 on-ramp at Princess Drive and Pima Road in Scottsdale is scheduled to be closed for two months

8 hours ago

Improvements coming to Brooks Crossing Park (City of Chandler Photo)....

Bailey Leasure

New improvements coming to Chandler’s Brooks Crossing Park

Chandler City Council approves a construction agreement that will allow for improvements to Brooks Crossing Park.

9 hours ago

Sponsored Articles

...

Midwestern University

Midwestern University Clinic visits boost student training & community health

Going to a Midwestern University Clinic can help make you feel good in more ways than one.

...

Condor Airlines

Condor Airlines can get you smoothly from Phoenix to Frankfurt on new A330-900neo airplane

Adventure Awaits! And there's no better way to experience the vacation of your dreams than traveling with Condor Airlines.

...

DESERT INSTITUTE FOR SPINE CARE

Desert Institute for Spine Care is the place for weekend warriors to fix their back pain

Spring has sprung and nothing is better than March in Arizona. The temperatures are perfect and with the beautiful weather, Arizona has become a hotbed for hikers, runners, golfers, pickleball players and all types of weekend warriors.

Supply issues take car buying in Arizona down a rocky road