New car shortage, used car prices rise

Local News

HOLYOKE, Mass. (WWLP) – Nationwide, new cars are becoming hard to come by, and that’s impacted prices for used vehicles.

Used car prices have been soaring in recent months due to a global semi-conductor-chip shortage, which has led to reduced availability of new cars. That’s led more people to scour the market for used cars, driving those prices up.

Gary Rome Hyundai in Holyoke told us why they’ve been able to keep a high inventory of new and used cars, unlike many other dealerships.

General Manager Timothy Ferreira told 22News, “We have been able to take in some great trades, and with those trades, we haven’t had to rely on the auction to purchase cars like other dealerships that are really struggling because the price is through the roof with the auction.”

But there’s an upside to this: trade-in values for older vehicles are spiking too.

According to new research, the average value of used cars traded in for another purchase for March reached an all-time high.

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