If you are looking for a new or used car in New Jersey, you are likely paying more for the vehicle than you thought.

According to an analysis in Consumer Reports, used car prices have increased by more than 20% compared to the previous year, and new car prices have also increased by almost 9%.

April had the highest sales volume in 15 years.

Jim Appleton, president of the New Jersey Coalition of Automotive Retailers, said the supply of new vehicles is limited for several reasons, including a known chip shortage.

A shortage of semiconductors has limited the supply of microchip processors used in new vehicles, just as consumer demand for new vehicles is rising, now that the pandemic appears to be easing.

He said another reason for the shortage of vehicles was “COVID-19-related parts suppliers with rolling downtimes and interrupted production schedules.”

Appleton pointed out that with a limited supply of new vehicles, “the supply of used vehicles sold by existing owners will also become scarcer”.

He said while consumers may need to spend a little more time searching for the vehicle of their choice, the good news is, “There are 500 dealerships across the state, and the beauty of the franchise system is that there are 500 dealerships Will move heaven and earth, customers will find exactly what they want. “

He added that despite the chip shortage that should wear off by the fall, it is still a good time to buy a car.

“We will continue to see high demand as the economy is moving in the right direction,” he said. “Start-up money, much of it has been used, and interest rates remain low.”

You can reach reporter David Matthau at [email protected]

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