SACRAMENTO (CBS13) – Good news for car buyers who want to trade in their vehicle for cash: there is a shortage of used cars and dealers are buying.
The pandemic and the resulting supply chain impacts are still at work on the automotive industry. Automakers cannot manufacture new vehicles quickly enough to meet demand due to a global semiconductor shortage, among other things. Production has slowed down and cannot meet the demand that started during the pandemic.
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Enter: used or certified cars.
Sacramento dealership Niello Volkswagen has a range of used cars up front: Jeep, Mercedes, Audi and Porsche models sit alongside Volkswagens. They’ll take anything of make, model, or year – if they don’t resell it, they’ll go up for auction.
âWhat we’re seeing right now is that a shortage of new cars has created increased demand with low supply. So what this does is that there is now a higher demand for used vehicles. This increases the market value, âsaid Eddie Thomas, general manager of Niello Volkswagen.
Thomas said cash swap offers were at their “highest on record” and it wasn’t a marketing ploy, he notes, used cars are in demand. Especially with the resumption of online car shopping during the pandemic, dealerships must have options for customers on the ground.
That’s why, he said, they’ll take anything.
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âWe are partners of Kelley Blue Book. We use their instant cash offer process. We are a preferred buyer for them. And once you plug in your condition and then do model miles, it calculates the number for us, âThomas said.
Niello Volkswagen is even getting creative and held its biggest day of Kelley Blue Book instant money deals last weekend to encourage customers to trade in their vehicles. With each assessment, customers received a $ 50 Visa gift card, free car wash, free food and drink, and a raffle ticket for the prizes.
Of course, in addition to the freebies, they also received a cash offer within 15 minutes. The goal, said Thomas, is to increase the number of used vehicles in the field to make up for the lack of new ones.
To put it in perspective: in November there are 15 new cars on the lot at Niello Volkswagen, while usually there are 100.
âThere is really no vehicle that is not in demand. I mean, everything from Kias and Hyundai and Hondas, down to Mercedes, Porsche, Audi, Volkswagen, everything. Everything is in high demand right now, âsaid Thomas.
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Thomas said he expects delays at auto factories to continue until 2023. As to when he will see take-back offers go down, that’s more difficult to determine. He said his advice to those considering a swap is not to wait, as there is no precedent for a buyout market like this.