Rising Cost of Purchasing a New or Used Car
The Supply Shortage
Car companies are struggling to build new cars, and this tendency might maintain for a little while. Many people are now unable to replace their used car with a new one. Because of that, they are looking at the used market. The global shortage of semiconductors used for microchips in cars for safety systems and displays has had significant production cuts, translating to months-long waiting for new vehicles. All of this increases the prices of both used and new cars.
The Stall of New Cars
With the recent events in the world, online car sales jumped to new highs, with consumers a lot more confident. This marked a profound shift in consumer behavior that changed the market altogether. The sales of new cars were only a bit over 1.6 million in 2021, about 30% less than the years before the pandemic.
A Turnover causes a shortage.
Most new cars are bought through finance, usually personal contract purchase or PCP. This, in general, has low monthly payments, and a large final balloon payment follows it. Since most people don’t have the money to make the final payment, they are forced to give the car back or take out another loan. Because of the lack of new cars in stock, people purchasing vehicles have to pay highly inflated prices for used vehicles.
Our staff will treat your vehicle as if was their own.
We employ ASE certified mechanics who use today’s latest automotive technology and are equipped to handle all major and minor auto repair services on foreign and domestic vehicles.
Located at 99 Florence Street, near the “Y” intersection in Hueytown.
Preventive maintenance can reduce your repair bills in the future.
We offer mounting, balancing and rotation for FREE on all tire sales.
Welcome to Ken’s Tire and Wheel, your number one source for all things automotive. We’re dedicated to providing you the very best repair services, with an emphasis on honesty, quality, and affordability.
Founded in 1978 Ken’s Tire and Wheel has helped the local community keep putting miles on the Hueytown and Bessemer roads.
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