Why Aren’t Used Cars More Available Right Now?

Missouri car shoppers continue to wonder why more used vehicles aren’t available right now. It’s a legitimate question and not just a local one. The issue affects people far beyond the Missouri border. Shoppers from coast to coast are grappling with the same question. The answer remains the same, no matter where you live, and it’s a little complicated. Therefore, we had our vehicle market analysts dig deeper into the problem to provide you with answers to the current inventory shortage and what to expect moving forward.

What Caused the Used Car Inventory Shortage?

2015 Jeep Cherokee Diesel – Review by The NRMA is licensed with CC BY 2.0

Supply and demand lay at the heart of the issue. However, the answer goes far beyond this simple equation. Let’s break it down, starting with supply. The pandemic shut down the world’s manufacturing companies for an extended period, including auto manufacturers. This shutdown had the proverbial snowball effect starting with new inventory. Yet, even though manufacturing ceased, demand for vehicles remained, albeit somewhat less than expected.

During the early portion of the pandemic, dealerships had inventory on hand that they sold as usual. Yet, the pipeline for new inventory was shut off. Once dealers sold their existing vehicles, we saw the impact of this new car shortage hitting the industry. Statistics show the auto industry lost over 2 million units in new car sales in 2020 and again in 2021. That loss translates to close to 4.5 million people waiting to purchase a new car.

Even though the demand for vehicles ebbed somewhat, that still left many people in need of transportation. Unless you lived in a big city, where walking to the grocery store, doctor’s office, etc., was feasible, you needed a car to survive. As a result, people turned to the used car market to fill their needs. Unfortunately, dealerships everywhere saw their used inventory quickly depleted. With no new production or car inventory arriving, this created the shortage that lingers even now.

Chip Shortages

Another industry that took a hit from shutting down during the pandemic was the chip manufacturing sector. In the modern world, microchips come in almost everything we buy, from phones to computers, televisions and appliances, and automobiles. You might be surprised to hear that some cars have as many as 3,000 microchips, most of which are necessary to make them run. This microchip shortage bogged down new-car production when the auto industry reopened manufacturing.

Unfortunately, the auto industry accounted for less than 10% of the microchip market. Instead, most chips sold went to the electronics sector for phones, computers, printers, televisions, and video games. These products experienced a spike in demand due to the pandemic when people were forced to work from home and had limited entertainment outlets.

Chip manufacturers focused production on the more significant part of their customer base to meet that demand. Most business experts would agree that’s good business. However, that left the car manufacturers waiting for critical parts, slowing production, and delaying new inventory from arriving.

Current Used Car Supply Levels

Savvy used car dealerships, like AutoCenters Herculaneum, quickly realized that we had to find more inventory to maintain operations. The last thing we wanted was a lot with only a dozen vehicles. As a result, we scoured the country looking for quality used cars, trucks, and SUVs. In addition, we actively participated in local, regional, and national auctions to secure new inventory.

We also took advantage of our high sales volume and offered more money for trade-ins. We knew that buyers would continue to arrive in search of quality vehicles. Therefore, we aggressively went after the trade-in market. We’ve streamlined the process with our online vehicle evaluation tool powered by TEXTiUM Instant Values. With this tool, you’ll receive an instant cash offer in seconds after answering a few simple questions regarding your vehicle’s age, mileage, and condition. Then, you can sell us your car or use that offer towards purchasing another vehicle.

Expansive Selection of Used Vehicles at AutoCenters Herculaneum

Currently, used car supply levels remain low industry-wide, but not at AutoCenters Herculaneum. We have well over 400 cars, trucks, and SUVs available. You’ll find many late-model vehicles with low mileage and priced competitively. If you’re searching for a reliable, versatile SUV, we have over 200 SUVs from nearly every manufacturer. We have the popular Escape, Edge, and Expedition models from Ford in front or all-wheel-drive.

Models in our inventory, such as the Honda Pilot, CR-V, and HR-V, come with the reliability you expect from Honda and the latest driver-assist systems to elevate your commute. Our vast selection of Jeep vehicles includes many Cherokee models ranging from the refined Limited trim to the off-road warrior Trail Hawk model. Of course, we have plenty of Jeep Wranglers with the legendary 4×4 system and open-air driving experience you crave.

Perhaps you need a truck for work or play. In that case, we have over 100 pickup trucks from Ford, Chevrolet, GMC, Toyota, and RAM. You can opt for one of the many midsized trucks on our lot, such as the Chevy Colorado, GMC Canyon, or Ford Ranger. These pickups come with 4×4 capability in various cab styles and bed lengths.

For full-size performance, our variety of pickup trucks, such as the Ford F-150, Chevy Silverado, GMC Sierra, Toyota Tundra, and RAM 1500, has something for everyone. You’ll find late-model trucks with the latest towing and hauling capacity to make your work week smoother. In addition, many of these models have elevated interiors for maximum comfort.

If you’re looking for a reliable car for your St. Louis commute, we have over 100 used sedans. Our inventory includes fuel-efficient models from Toyota, Hyundai, Chevrolet, etc. Maybe you prefer a luxury automobile. If so, we always have a great variety of models from Lexus, Mercedes, BMW, and Cadillac. Our luxury sedans offer the unparalleled comfort and smooth ride you expect at prices much lower than purchasing the vehicle new.

At AutoCenters Herculaneum, we know what drivers want in a used vehicle. Are you ready to upgrade to a quality, reliable car, truck, or SUV? If so, we invite you to shop our online inventory. After you find a few vehicles you want a closer look at, visit our dealership on McNutt Street. One of our professional staff will be happy to show you your preferred cars and let you take your favorite for a test drive.