Motor Vehicle Mark-Ups: East students are struggling to find affordable used cars due to inflation and the computer chip shortage

As used vehicles become more expensive nationally due to inflation, computer chips and the pandemic, East students and families are affected as they search for new cars.

The consumer price index for used cars and trucks increased by 40% from January of last year to this year, according to data from the US Bureau of Labor Statistics. Automotive experts state that car prices are unlikely to go back down to pre-pandemic prices anytime soon, if ever.

Sophomore Grey Robinson has struggled to find an affordable, used car for the past six months.

“Price is a big factor, just because if you want a good example of a car that’s not horrible, you’re going to have to pay for it,” Robinson said. “Especially as a lot of people are shopping for cars right now.”

A huge contributor to raised prices is a shortage of computer chips, which control technology in cars. The shortage increased due to pandemic disruptions in the supply chain, according to Business Insider. With a decrease in new cars being made, less used cars have been listed.

According to a Louisburg Ford sales director Jimmy Baker, $10-15 thousand dollars is under budget for a “good” used car, compared to pre-pandemic prices where $10-15 thousand would buy a nicer used car.

“A good vehicle is not in that price range right now,” Baker said. “It’s really hard to fix a good inexpensive car. They’re just not out there anymore.”

According to Baker, during the search for inexpensive cars, it’s important to be extra careful of sketchy sellers. Small, corner-lot dealers can be risky since they don’t have to disclose the vehicle safety inspection to the seller.

“Just a few weeks back, I went to go look at a truck, and it was a completely different truck that was listed,” Robinson said. “Sometimes you’ll go look at cars, and they’ll just be in not as good a condition as you previously perceived to be.”

Since the current used car market is tight, it can be hard to complete the purchase of a car without facing competition, according to Robinson.

“There have been quite a few [that I’ve tried to purchase],” Robinson said. “I think there’s been three at this point where I have put money upfront and then someone offered a higher amount and bought before me.”

Certain features that buyers might expect with a used car may have to be compromised, and low mileage and safety features can be difficult to find, according to Robinson.

“Luxury features like connectivity to your devices, entertainment features [and] comfort features like heated seats, heated steering wheels, automatic features like auto-close windows…you start not being able to afford because you still have to [buy just a car],” Auto technology teacher Brian Gay said.

Used cars can be difficult to sell due to the “previous owner factor,” according to Baker. Oftentimes, the more owners a car has had, the worse condition it’s in.

“[When buying a used car], ask to see the reconditioning ticket from the service department,” Baker said. “Ask to see the history report and any other history the sales consultants can provide. If you feel the need, ask if you can take it to a personal mechanic for a quick checkover.”