It’s not toilet rolls this time!
I am old enough to remember a candle shortage in the 70s when we didn’t have electricity! We all remember the toilet roll shortage - but now it looks like the world is running out of everything! Not just cars, but building materials, timber, computer bits etc and as it doesn’t appear to be caused by Brexit, it isn’t really hitting the headlines - but I think it is major and will have a big effect on all of us.
Businesses have managed to get through Covid, but now will be strangled by a lack of materials. It’s certainly having a big effect on new cars, which in turn is having a knock-on effect on used cars, as the lack of supply is driving up prices!
So, if you can find a new car available that you want, your car will never be worth more! Used Car Values went up 6.5% in a MONTH! Previously, the biggest monthly increase was less than 2%!! And at present, the manufacturers haven't put up new car prices! Timber and building materials have rocketed in price, and you can’t find an available tradesperson because the money saved on holidays and going out is being spent on home improvements - or hopefully cars!
As with everything, there will be winners and losers, but at present, I am struggling to see who the winners will be, it's certainly not going to be the car industry.
“The price of ability does not depend on merit but on supply and demand” George Bernard Shaw