Due to continuing chip shortages and supply chain issues, both used and new car prices are likely to continue to remain high, or even increase further.
“The computer chip shortage continues into 2022. It doesn’t seem like it’s getting better. There are reports out there that it might be getting a little worse, in a sense that that cities in China where these chips are manufactured are starting to shut down again,” said U of M Flint Economics professor Chris Douglas.
With the inflation rate reaching 6.8% from November 2020 to November 2021, consumers are wondering how to proceed.
Douglas says that the longer people can hold onto their cars to ride out this supply chain and chip shortage disruption, the better off they will likely be a few years from now when hopefully things have turned around. So if someone owns their car, Douglas said to drive it until the wheels fall off.
And when they do fall off, put them back on and keep driving.