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What is happening with used & new cars?

NewsWest 9 spoke to an Odessa car dealership to find out more about the problems being caused by the chip shortage.

ODESSA, Texas — Shortages - we seem to be hearing more and more about them.

One of those being chips, and we are not talking about the food. 

A chip shortage has been affecting the production of many everyday items, like phones and household appliances. These chips also are important for car production.

NewsWest 9 spoke to Cain Quintana, General Sales Manager at Lithia Hyundai of Odessa. He said people will notice how the parking lots at the dealerships still have many vehicles to choose from, but people will also realize how there will be fewer new cars.

"Whether it's a Hyundai, Toyota or Chevrolet, you're not gonna see as much new inventory," said Quintana. "These dealers are still backed up in getting new vehicles. Before the ratio between new and used cars was about 50-50. Now you have a lot more options on the used side."

Quintana has been in the car industry for over 20 years. He said this situation is the first of its kind, as used cars are in higher demand than ever.

"Now some used vehicles are worth more than they were before," said Quintana. "At times, a used car is sometimes sold even more than it was when it was brand new."

Quintana believes that most dealerships are going through the same situation. They are still receiving inventory, but not like it was before.

"Your ratio from new to used inventory will be more heavy towards used vehicles," said Quintana. "On the new side, the dealers are still going to get those vehicles, but they are going to come in at a slower pace because they are manufactured slower than before."

Quintana told NewsWest 9 that the situation has not put a brake in people purchasing a vehicle.

"The public still wants to buy vehicles because they still need them for work or for personal reasons," said Quintana. 

So when will this end? Quintana said it is still an unanswered question. He does however think that many in the industry have adapted to the situation.

"This was supposed to be done four or five months ago and here we are with the same shortage months later," said Quintana. "Now, we know the situation so it's getting a little easier for us to still sell vehicles through this all."

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