March 18, 2025
The prices of used vehicles in Japan are currently very high, sometimes even exceeding new car prices for comparable models, due to delays in new car deliveries. This surge in used car prices is largely driven by a global shortage of semiconductors, which are essential components in modern vehicles. The resulting limited availability of new cars is pushing buyers towards the used market, increasing demand and driving up prices.
Global Chip Shortage:
The ongoing semiconductor shortage that jolted automobile industry globally, is a key component in vehicle electronics, has severely impacted new car production so badly that production waiting time for some models is 3-4 years or more.
Delayed Deliveries:
The chip shortage has led to significant delays in new car deliveries in Japan, with some models experiencing wait times of 1-2 years even longer.
Increased Demand for Used Cars:
Since new cars production and delivery is taking longer, many buyers are turning to the used car market, boosting demand and pushing prices up at record high.