(CBS DETROIT) – The delayed production of new vehicles is causing the cost of pre-owned inventory to rise.
That’s according to Al Tiano of A&B Motors in Roseville.READ MORE: Ribs RnB Music Festival Kicks Off This Weekend In Downtown Detroit
“I mean if you look around at the new car dealers, they have no inventory,” the businessman explained.
“So, what do you think that does? Jacks the prices up of used car inventory.”
Tiano says he’s been in the business for over 40 years, but today’s economy is something he’s learning to navigate.
“We have a lot of issues getting certain parts,” Tiano told CW50’s Cryss Walker.
“Certain parts are still available, however they do make after-market parts and you know we can pass them on. There’s a shortage of parts. There’s a shortage of vehicles. Shortage of everything. It’s kind of like the new normal.”
Tiano says the parts shortage has been in the works since the beginning of the pandemic and the trucker protest is putting more pressure on an already volatile issue.READ MORE: Judge Says Michigan Gov. Whitmer Won't Have To Testify In Abortion Lawsuit
“It’s definitely not helping out the situation,” he explained.
“I feel sorry for the automakers. They’re already having a very hard time to produce vehicles with the chip shortage.”
Since new models are on hold, Tiano says there’s a 40 percent increase on pre-owned vehicles due to the high demand.
“Forty percent additional costs on to what we were paying a year and a half ago, two years ago for cars, which, when you carry an inventory like A&B does of over 200 vehicles in stock, just the numbers add up.”
Although this is a tough time for the automotive industry, Tiano believes new strategies can be put in place to soften the blow.
“I believe it will get corrected. It’s just going to take a little time. We gotta hold on to our seats and keep moving forward, keep positive.”
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