Many commercial businesses need work trucks with hauling or towing power. They cannot compromise with an SUV or van if the truck engine breaks down and needs replacement. Currently, the time to find a new pickup or truck is tricky because of inventory shortage. Besides, the used truck dealer will possibly ask for high rates.
Online automobile selling and buying platforms like MotorCloud helps vehicle owners to trade beaten-up and old used trucks. Your used truck will possibly bring in good cash than you think. You can use the trade-in towards purchasing a new model.
How new truck production line is struggling?
Every time there is a need for an old truck replacement, every buyer inclines towards buying a new one. The production line is halted due to semiconductor chip supply issues across the world. The microchips control different technical and electrical features within the vehicle. It controls powered accessories, brakes, infotainment systems, and myriads of systems within the truck.
Due to the COVID-19 shutdown, the automakers stopped making vehicles, so no orders for chips were made. However, there was an increase in chip demand during the pandemic by the electronic sector. The demand for electronics like iPhones, laptops, game consoles, etc. escalated as people started working from home and kids got education online. The chip manufacturers got orders in bulk from the electronic sector.
Therefore, when the automotive industry restarted its production their orders stayed at the bottom. The repercussions of poor inventory management by the automotive sector are felt in waves and ripples. The semiconductor chip manufacturers are snowed under bulk orders and cannot handle the supply capacity. So, there are delays in vehicle production.
At the end of 2021, Ford and General Motors had to stop truck production along with other vehicles until the chips are delivered. Toyota also halted its production as its stockpile of chips depleted. Currently, some automakers are building a portion that does not need the chips and setting unfinished cars aside waiting for semiconductors to arrive. Therefore, new vehicles supply is unable to fulfill the demand, so buying used pickups or trucks is a better option.
Used truck pricing
Used car prices are soaring due to the new vehicles shortage. Average buyers planning to shop for used vehicles after 2020, experienced price spikes because the lots of second-hand vehicles were plundered because new cars were unavailable. Even people holding off to invest in a new SUV will inevitably need to replace it but with a used one.
Generally, the demand for second-hand trucks is high, but it has started to decline slowly as month’s progress. Last year, full-sized second-hand trucks were 37% more costly than what it is currently.
Buyers must stop expecting that the rates of the used vehicle will go back to what it was before the pandemic. The price trends of second-hand trucks are somewhat on the high side, but they will decline more as new cars will start to enter the dealership inventories. However, the chance that prices will return to former lower rates is impossible.