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Why Are Car Prices On the Rise?

by | Jul 13, 2021

If you’ve been out looking for a new car lately, or you’ve been checking out used cars in Tempe, you may have experienced sticker shock. Thanks to COVID-19 and other factors, car prices are rising. Unfortunately, that means it’s going to cost you significantly more money to replace your current ride this year.


Global Chip Shortage Leads to Rising Car Prices

In addition to car prices being high, production is also down, meaning there are fewer new vehicles to choose from. What’s the big problem causing all the hype? It’s simple … a global chip shortage.

Semiconductor chips are used in a variety of products, including cell phones, laptops, and cars. Here’s why there aren’t enough to go around:

  • COVID-19: During the COVID-19 pandemic, a record number of people were working and/or schooling from home. That led to a significant demand for chip-containing products, a demand so high that production couldn’t keep up.


  • Weather: One of the leading producers of the chips used in our vehicles is Taiwan. And, Taiwan didn’t get hit by any typhoons last year, leading to a water shortage. Since quality water is a critical component for chip production, production is down, and it may not improve until 2022.


What Does the Chip Shortage Mean For YOU?

Without the necessary semiconductor chips available, many automakers have significantly decreased vehicle production. With fewer new cars available, more people are turning to buying used cars. That depletes the used car inventory and car prices overall have increased.

Ultimately, this all means that unless you desperately need a different vehicle, it’s more advantageous than ever to keep the one you already have. How can you make sure it stays in good condition and serves you well for months and years to come? Follow a preventative maintenance schedule!


Maintenance Makes a Difference!

Buying a new car may sound exciting, but we like the idea of saving money even better! For example, did you know that you could save yourself thousands of dollars simply by keeping your vehicle after it’s paid off and maintaining it along the way?


At our Tempe auto repair shop, we don’t just give you car maintenance advice … we practice what we preach. Take a look at some of our vehicles, their average mileage, and their model years.

Good Works Fleet


It’s obvious that regular care and maintenance truly make a difference! If you’re looking for some of the best auto mechanics in Tempe, or an honest auto repair shop, we’d love for you to stop in and give us a try.

Schedule an appointment with us today and we’ll take care of your vehicle like we do our own. Say ‘no’ to high car prices and keep driving safely with the vehicle you already have!


Auto repair shops with payment plans near me

Good Works Auto Repair in Tempe offers financing and allows you to make payments on your car repairs.

Shop Hours

Mon – Fri 7:30 – 5:30
Sat 7:30 – 5:30


Our Location

2348 E. Broadway Rd
Tempe, AZ 85282

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