PHOENIX - Used car prices are on the rise, and there's a big delay in the manufacturing of new cars because of a global chip shortage.
Because of this, more people are turning to auto auction companies like Sierra Auction in Phoenix.
The auction house has seen a big increase in consumer interest, and they currently have 250 cars up for sale.
"The used car market is very hot," said Nick Carr, president of Sierra Auction. "We have seen an increase [of] right around 20% of the prices used cars are going for right now."
There is a global semiconductor chip shortage, which has stalled the auto industry's ability to manufacture new vehicles.
"We started seeing it back in December when they started having problems getting the chips manufactured for new vehicles," Carr said. "That is where there is an uptake in the used car crisis."
At Sierra Auction, they have seen a 30% increase of their bidders in recent months. Buyers can find fleet, police-seized or charity vehicles - or even Rolls Royces.
Their method gives the consumer more control on the price.
"We are unique where you can come in and bid on a car," Carr explained. "You bid what you want to pay, so there is a limit to what you will spend."
Learn more: https://www.sierraauction.com/
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