The worldwide microchip shortage is being blamed for a sharp rise in Jacksonville's used car prices.
iSeeCars.com, an online automotive marketplace, said used car prices were up 23.5% in April in Jacksonville, which is a median increase of $5,013 year-over-year.
Nationwide, used car prices have increased 16.8%, or $3,926, for the same time period.
“The current used car price increase is unparalleled, and prices will likely remain elevated for the foreseeable future due to the magnitude of the global microchip shortage and restricted new car supply,” said iSeeCars Executive Analyst, Karl Brauer in a news release.
Modern cars can have thousands of microchips in them to monitor and control everything from tire pressure and climate control systems to infotainment screens. Auto manufacturers around the world, from Ford and General Motors to Hyundai and Porsche, have been forced to scale back or halt production of some models due to the chip shortage.
One example: Ford estimates a “24+ weeks” delivery time for its 2021 Mustang Mach-E and shows Coggin Ford in Jacksonville is marking the car up by $5,000 over its manufacturer’s suggested retail price.
The tight supply of new cars is resulting in fewer trade-ins of used cars.
For some used-car owners there may be a silver lining. It may be the perfect time to sell. The Chevrolet Corvette saw its used car value jump 33.9%, according to iSeeCars.com, while the Mercedes-Benz G-Class increased 33.9% in value.
“These vehicles embody luxury and are in high demand, likely because buyers have additional resources to spend on cars due to decreased travel and entertainment during the pandemic,” said Brauer.
The Tesla Model S was the only used car in to see a price decrease in its segment, compared to April 2020, according to iSeeCars.com.
Taiwan's semiconductor makers are racing to end the chip shortage that has forced carmakers to hit the brakes on production.
But the Taiwanese government's economic chief said in April it is still unclear when the crisis will be over.
- NPR's John Ruwitch contributed to this report.