Global shortage of new cars leaves car yards nearly empty and forces used car prices up

He said, normally, he would have eight to 12 to cars on display.

“At the moment, we have one, so supply is very tight,” he said.

“The factory in Japan closed down for a month, so it’s been a chase, a catch-up, ever since.”

Mr Sutton said he still had plenty of people interested in buying new cars — they just had to wait a little longer.

Demand up, supply down

What’s happening at this car dealership in Alice Springs reflects a global economic trend.

There are fewer new imported cars available due to factory disruptions around the world, leading to an increase in demand for used cars.

And with a rise in demand, comes a rise in prices.

CommSec data shows used car prices are up 30 per cent from this time last year, after falling in the early stages of the pandemic because nobody wanted to buy a car they could not test drive.

Mr Sutton is awaiting his next shipment of new cars, which is due in a few weeks.

Half of the six cars on that truck are already sold, and he said he was confident he would be able to sell the others.

“People are getting back on with their life.

And he said there were other market conditions favourable to his business right now.

“Interest rates are very low for new vehicles, so I think they’re taking advantage of that to get into a new vehicle.”

Used car prices up

Alan Thorp, who operates the second-hand car business Stuart Highway Autos, said he had seen the price increase affect his business.

He buys second-hand cars wholesale, does them up, then sells them on.

He said the cost of the used cars he bought had gone up around 50 per cent.

Mr Thorp said he was doing his best not to pass on that wholesale price rise to his