models simply aren’t available. You might even have to put your name on a waitlist. With new cars being in high demand and low supply, used cars have moved to the forefront for car shoppers. Of course, the question still remains: “will the new car market ever stabilize?”

How Did We Get Here?

There’s no question that everyone feels the effects of the COVID-19 global pandemic. The auto industry especially took a hit. Due to labor shortages and supply line delays, essential computer chips and semiconductors are in short supply. These elements are part of everything from automobiles to video game systems to cell phones.

While many would expect the shut-down effects of a pandemic to haul the economy, people looked towards technology to make it through stay-at-home orders and quarantines. With such a high demand for these chips, everyone had to wait. This all resulted in new cars being delayed coming off the production line.

The Rise of Used Cars

With the pandemic in full swing, many urban dwellers looked to buy vehicles to help with their transportation needs. Some of these people wanted to avoid crowded public transportation, while others moved away from the city in search of more open spaces. The demand for automobiles skyrocketed, and manufacturers simply couldn’t keep up.

Local dealerships focused on used cars to fill the need with fewer new models available. Even shoppers who would never consider a pre-owned vehicle otherwise were forced to buy something with some miles under its belt.

The demand for cars has been so high that some used cars are actually more expensive than their new counterparts. In other cases, auto manufacturers are releasing vehicles into the wild that don’t have complete functionality. That means your fresh truck won’t have heated seats or satellite radio just yet. Drivers may have to return to the dealership to have computer chips installed when they’re ready.

The Future of The Car Market

Most experts agree that the new car market will stabilize once production gets back to normal. Computer chip production has to catch up to demand for that to happen. At the start of the pandemic, only a handful of facilities could make these parts worldwide. Production has escalated, and new departments are opening.

As the global supply line catches up and computer chip production meets demands, new cars will start coming off of the assembly line again. As new cars are more available, the demand for used cars will return to normal. It may take a while, but the simple answer is “yes, the new car market will eventually stabilize,” we just need to be patient.