REVVING UP: Used car values rising as supply chain shortages uncertainty looms

REVVING UP: Used car values rising as supply chain shortages uncertainty looms

RAPID CITY, S.D. — The housing market in the area has been a hot topic in recent headlines but the car industry might be taking that over.

According to the latest data from the U.S Bureau of Labor statistics, new cars are selling for over 12 percent higher than last year, while used cars are up 40 percent.

“I’ve seen plenty of people that purchased something two or three years ago and end up, for whatever reason, wanting to get into something different or just needing to get rid of a vehicle. And yeah, they end up making, you know, a little bit of money on it,” said Rob Doyle, with Quality Auto of the Black Hills in Rapid City.

But Doyle also says that the difficulties in the industry don’t stop there. He says that the focus in the industry is keeping the “lot” full to make sure buyers have plenty of options and that’s becoming harder and harder.

“An hours’ worth of actively buying two years ago would produce a lot more vehicles than now,” Doyle said “I mean, now it’s, you know, closer to 8-10 hours, you know, that we had put in for the same amount of to get that same amount of inventory on the lot.”

Doyle also touched on an issue with local mechanics that they do business with. He says that it’s taking longer for people to get their cars back from repairs due to a parts and labor shortage.

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“That’s where we’re seeing a lot of, like, our detail shops and our repair shops, the owners putting in a lot of hours ’cause they’re having to cover a lot of time that they’re losing for lack of employees, and so I know that’s another big part of it too,” Doyle said. 

That’s all with no definite time line as to when the supply chain issue will come to an end.

“We’re playing it by ear, just as much as everybody else is,” Doyle said.