LOUISVILLE, Ky.-- Monday was Idean Tag’s first day back to work after surgery for a dislocated shoulder, but it’s not his shoulder that’s causing problems at his family-owned car lot, David’s Import Auto Sales. 

What You Need To Know

  • Demand for new and used cars is high while supply is low

  • A lack of new cars entering the market is part of the problem

  • Drivers are also keeping and repairing their vehicles instead of buying new ones

  • The shortage is causing issues for dealerships and customers

“I got an email asking me why my price was so low and asked me if the car had a clean title, which got me thinking why would he asked me these questions when the car is competitively priced at a point where it shouldn’t call somebody to think that way,” says Tag. 

So he checked online and discovered the value of the car was much higher than it originally was and that he was selling himself short and not just on that one car. 

“I’ve been working here since I was 19 and I’m going on 31 and it’s the first time in all my time working here that I’ve had to raise the prices on all my cars across the board,” says Tag. 

Tag says a lack of new vehicles, fewer cars in auctions, and drivers repairing their vehicles instead of buying new ones is causing the issue. 

“I still get customers every day they asked me hey, I’m just looking for a 3, $4,000 car or you know a $2,000 car just need to hop in and go and what used to be a $2,000 car is now four or $5,000,” says Tag. 

The team is left to question if servicing cars they purchased to resale is even worth it with the current market. 

“So this car, in particular, retails for $8,000 high like high retail, clean everything $8,000. The same car with 70,000 more miles with the same amount of fair damage all around cosmetically going for the same price $8,000. That’s 70,000 more miles,” says Tag. 

Tag says cars priced higher than their usual value are also causing issues for customers.

“It creates a struggle because if you’re trying to get a loan on a car the price has been raised but the value doesn’t reflect it in the books online. It’s kind of hard to state your case for getting a loan, so that’s just another example of creating a little chokehold on people acquiring new cars,” says Tag.

Phillip Davis has worked in the service center at the car lot for 20 years. 

He says with a staff shortage, focusing on customers’ cars is more important anyway. 

“Since we have a lack of assistants to do the prepping job, it’s been pretty busy for me but if I had like another guy to prep, or someone else or two other people, it wouldn’t be as hard,” says Davis.  

Tag believes tax return season and warm weather will bring shoppers out, but it won’t solve the problem. 

“I don’t see an end to the prices being so high just because everything is still backed up everything is waiting to kind of catch up supply chain-wise, so I think this will continue into next year but who knows,” says Tag. 

One thing is for sure, he hopes he won’t be in a sling by then.  

Related Stories