APE shares are down today (though still marginally above...

APE shares are down today (though still marginally above A$15.00).

This 'The Australian' online story today is helpful:

'Used vehicle prices continued a “relentless path higher” in the first quarter of the year as Australia’s strong economic recovery combined with new vehicle supply constraints pushed the cost of a preloved car 37 per cent above pre-pandemic highs.

A report by Moody’s Analytics Senior Economics Michael Brisson shows that the average price of a second hand car lifted five per cent in the three months to March – the slowest quarterly increase in the past year, but a rate of growth above any quarterly increase in the decade prior.

It means the cost of a 2018 Toyota Camry sold at auction in NSW has increased from around $26,000 to just under $30,000 in less than a year, according to Moody’s data.

The price of a similarly aged Ford Ranger has lifted from $32,000 to around $39,000.

Mr Brisson said the price of used car growth was directly linked to economic growth lifting demand for new cars above what the market is able to supply.

“Demand for vehicles has been boosted by a strong economic recovery. The Australian economy has jumped back quickly thanks to aggressive federal fiscal policy and successful control of the COVID-19 outbreak,” he said.

“Already-tight inventories have been stretched thinner as manufacturers around the globe grapple with a bottleneck of available semiconductor chips,” he said.

“Global auto production has been slowed by a shortage of semiconductor chips, which are increasingly prevalent in the modern automobile.”

Australian Automotive Dealer Association CEO James Voortman said a global shortage of semiconductor chips was being exacerbated by offshore car manufacturers struggling “to recover from factory closures brought on by the pandemic.”'