The microchip crisis drives up the cost of used cars

Everything we know about used cars is wrong. First of all: a car loses value the moment it leaves the dealership. But according to data from Moody’s analytics, used car prices in the United States rose 34% during 2020 and 10% in the first half of 2021 due to a shortage of electronic components. The reason is a mix of factors. The pandemic, with the lockdowns and the consequent increase in demand for electronic devices, caused the demand for microchips to take off just when companies had planned production cuts. Semiconductors have been diverted to the device market and therefore an even greater shortage has been generated in the automotive sector, which in some cases has had to block or slow down the exit from the factory of some models. To which, someone has chosen to get around the obstacle by returning to dashboards with analogue instrumentation. But when, with the relaxation of travel restrictions, the demand for cars started to rise again, the problems became even more evident. The one that benefited was the second-hand market, which saw prices continue to rise well above pre-pandemic values. According to data from Moody’s, in the United States a Toyota Hi-Lux with 30,000 km is almost worth the price of the same brand new car. But there are models who are acting even more extravagantly. According to the classifieds portal iSeeCars, Forbes reports that a Kia Telluride SUV in good condition sells for an average of $ 3,500 more than a new one. Yet another trend, also documented by Forbes, is the revaluation of cars with more than 150 thousand kilometers behind them, which in the last year have increased in value by up to 30% more, instead of decreasing with the passage of time. And now it looks like the semiconductor crisis is coming to smartphones as well. Manufacturers have managed to keep out of the crisis so far, as they usually make their component purchases half a year in advance. But now stocks are running out. Shipments are slower, consumers are experiencing the first price hikes, and some manufacturers are delaying the release of new models. Samsung is expected to drop 20% in shipments expected for the next quarter, and Alphabet (owned by Google) has announced that its new model, the Pixel 5a 5G, will only be available in the US and Japan for the time being. . Problems also for Xiaomi. The Mi 11 Ultra model was supposed to arrive in India in April, but instead accumulated delays until the beginning of July. And the Redmi Note 10, announced at $ 161, sells for $ 174, 8% more than Apple, which manages about one sixth of the entire smartphone market (1.3 billion devices sold every year), and which has managed to use its influence on the supply chain to avoid falling victim to the microchip crisis. The same goes for some premium Samsung models. But apart from these exceptions, 80% of the industry is feeling the pinch, just at a time when demand continues to grow, after being supported by the need for devices in lockdown, and is now being pushed by the first signs of recovery. that lead consumers to start spending again.