Opportunists taking advantage of effects of global semiconductor chip shortage of car prices

There are opportunists in the automotive market who are exploiting unsuspecting buyers in the used vehicles’ market as prices rise over the global semiconductor chip shortage. Spokesperson for Old Mutual Insure, Lizo Mnguni, tells the OFM Business Hour some of these opportunists are charging exorbitant prices for used vehicles that are not in great condition. Mnguni warns that now, more than ever, buyers need to ensure they look under the hood when shopping for a used vehicle whether privately or via a car dealership. He says one should insist on going for test drives to make certain that the car is in functioning order before you purchase it.

The global chip shortage which has been affecting the automotive industry since the onset of the pandemic could last way into 2022 and 2023, reports the BBC (https://www.bbc.com/news/business-58465954).

Mnguni explains that when global economic activity was halted as a result of the Covid-19 pandemic, chip manufacturers were unable to operate. The pent up demand for gadgets as many people were based home, didn’t help the situation says the Old Mutual Insure spokesperson. This has resulted in the prices for used vehicles rising, and this has an impact on your insurance premiums.