Lack of new cars is ‘driving’ used car sales

EL PASO, Texas -- Since the beginning of the pandemic, there has been a microchip shortage which is seeing fewer new cars be made, which in turn is increasing the demand for used cars.

This year alone, about 370,500 vehicles have already been cut from global factory schedules due to chip shortages.

That lack of new car inventory is seeing the used car market skyrocket.

"The demand is much higher," Cameron Ortiz, the general manager at Stogner Auto Sales, said. "A lot of families only bought new cars, and now they're having to venture into the used car world and come see us, you know, so it's really different." 

Ortiz told ABC-7 that they see 1-2 families come to their lot a week after visiting a new car dealership. He said they're turning to used cars because of the price and the wait time to get a new car.

Because more people are shopping used, the price point has also increased.

According to Kelley Blue Book, a vehicle valuation company, used car prices have risen 44% since the beginning of the pandemic.

Ortiz said their prices have gone up about 20-30% for them.

Because of the changes in the industry, they've also had to make changes on their lot.

At the end of 2020, they had between 75 and 80 cars filling the lot. Now they have between 35 and 40 - practically half.

"We've definitely cut back our inventory, so we're not spending crazy money on vehicles," Ortiz said. "We could fill the lot, but our decision is to have lower inventory and better-priced stuff."