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.

Lifetime Windows & Doors

We want to hear from you.

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

Arizona News

(AP File Photo)...
Kevin Stone

Arizona man sentenced to 15 years for selling fentanyl that caused fatal OD

An Arizona man was sentenced Tuesday to 15 years in federal prison for supplying the fentanyl that killed a woman 2½ years ago.
1 day ago
(Facebook File Photo/Phoenix Police Department)...

Pedestrian crossing street killed in Laveen following hit-and-run

Phoenix police are investigating a fatal hit-and-run collision after a pedestrian died Tuesday evening in Laveen Village.
1 day ago
(Coronado National Forest Photo)...
Kevin Stone

Forest officials warn visitors about shipping container wall at Arizona border

Officials are warning Coronado National Forest visitors about potential safety hazards related to shipping container border wall construction in southern Arizona.
1 day ago
Shaqueila Hudson (Maricopa County Sheriff's Office Photo)...

Woman accused of fatally stabbing father during argument in Phoenix

A woman was arrested for allegedly stabbing her father to death during an argument Tuesday in Phoenix, authorities said.
1 day ago
(Photos via Buckeye Police Department)...

Buckeye Police boost reward to $12,000 for tips in fatal hit-and-run of 16-year-old girl

Authorities have upped the reward for tips in the fatal hit-and-run of a 16-year-old girl more than two years ago in Buckeye.
1 day ago
(AP Photo/Matt Rourke)...

Mesa police fatally shoot man who allegedly drove into patrol vehicle

Police shot and killed a man who allegedly drove into a patrol vehicle outside a Mesa convenience store early Wednesday.
1 day ago

Sponsored Articles

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.
Children’s Cancer Network

Children’s Cancer Network celebrates cancer-fighting superheroes, raises funds during September’s Childhood Cancer Awareness Month

Jace Hyduchak was like most other kids in his kindergarten class: He loved to play basketball, dress up like his favorite superheroes and jump as high as his pint-sized body would take him on his backyard trampoline.
Day & Night Air Conditioning, Heating and Plumbing

Ways to prevent clogged drains and what to do if you’re too late

While there are a variety of ways to prevent clogged drains, it's equally as important to know what to do when you're already too late.
Supply issues take car buying in Arizona down a rocky road