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Higher gas prices are pushing buyers towards smaller, more fuel-efficient cars

The high demand is causing used car values to soar, shaping up for another chaotic year for the industry.

CHARLOTTE, N.C. — Surging gas prices have many people turning to smaller compact cars, and that's if they can find one.

The car chip shortages have left car dealers with little to no inventory, and now many car dealers are diving into the used market to fill up their lots.

With many car dealers all on a hunt for used cars, some say it's becoming more difficult to find them.

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Some car dealers have dozens of people on the waiting list as they work to meet the customer demand.

"It's just so much competition, it's so much competition," Britt Poper from InstaCar said.

Pope said right now people are profiting from cars they bought two years ago, something that has never happened in the history of their business.

"Folks are looking for those Honda Civics, Honda Accords, and hybrids," Pope said. "When we get them we sell them fast."

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He said due to the high demand they've changed up the way they search for inventory and are now diving into the private market.

"We have to be a little more crafty in how we buy so that’s we go to folks home check out their car, and we buy it from them right in front of their house," Pope said.

He said new car shortages continue to put increased pressure on the used market, and right now the value of a car whether old or new are way above previous price tags.

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According to Kelly Blue Book, the average price of a new car lingers at over $47,000, an increase of more than $6,000 from last year.

"It is very unusual," Michael Fouriner with Fouriner Motor Company said.

Fouriner said they specialize in selling and repairing hybrid and electric cars.

He says while there is a higher demand for cars with electric motors, right now most of their revenue is comes from repairs.

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 "Since gas prices have gone about up, we have no cars available," Fouriner said.

He says even with no inventory, the waiting list continues to pile up with about 50 people.

"We have never seen in like this in 20 years, the used car market report says they don’t see an end to it right now," Fouriner said.

Contact Tradesha Woodard at twoodard1@wcnc.com and follow her on FacebookTwitter, and Instagram.

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