CHARLESTON, W.Va. — Jared Wyrick, the president of the West Virginia Auto Dealers Association says there are multiple factors into why used cars lots across the county are more and more empty, and why prices for both new and used vehicles are rising.
Wyrick appeared recently on MetroNews ‘Talkline’ and said it’s a mix of COVID-19 demand, the stimulus packages and the global semi-conductor shortage.
“Consumers are ready to spend money. They saved money over the past year. They are not eager to airplanes but ready for road trips,” Wyrick said.
Reuters reported on Friday that the global semiconductor chip shortage that has hit automakers around the world and constrained vehicle production will easily drag into next year.
Wyrick said that carmakers such as GM are beginning to drop certain technology features with models in order to adopt to the shortage. Reuters further reported that other manufacturers have built vehicles without the necessary chips and then parked them until their assembly can be finished later.
Consumers are even purchasing VIN numbers on cars, waiting for vehicles to be delivered, according to Wyrick. The Wall Street Journal stated that consumer demand for auto loans, leases, and personal loans are up 39% in the second quarter of 2021 compared to the same period in 2020.
While senior officials from the U.S. Commerce believe they are close, Wyrick said the massive supply issue isn’t going anywhere soon. Recently, GM announced pausing production at multiple North American plants due to the chip shortage.
“It’s ECON 101, the Demand is there but the supply is not. The prices increase,” Wyrick said. “New car prices have soared, used car prices have increased. Not just in West Virginia but nationwide because you have the demand but no the supply.”
Jared Wyrick, President of the West Virginia Auto Dealers Association, speaks with @HoppyKercheval about how the computer chip shortage is having an impact on the motor vehicle industry. WATCH: https://t.co/wkudfIRZCB pic.twitter.com/8DUrWagzXH
— MetroNews (@WVMetroNews) July 23, 2021