Car Questions: Are Car Inventories Low?
Are you looking to buy a new car sometime soon?
You may have a hard time doing so as car inventories are at an all-time low nowadays. If you find one you like, getting a discount is near impossible thanks to the global shortage plaguing the car industry. What’s worse is the supply shortage will drive car prices way up.
You need not despair, though, as things will go back to normal soon enough. In the meantime, you can learn about what’s causing the supply shortage and what brand it hits the hardest. By doing so, you can still navigate the market and find a nice car with relative success.
Read what we’ve prepared below to learn all you need to understand the market’s current state. See what you can do to get the car you want today!
What’s Causing the Vehicle Shortage?
Most often point towards the beginning of the pandemic lockdowns as the start of the shortage. It hit the pickup truck market first, depleting the inventory by the end of May 2020. People wanted the convenience these provided as the new normal started.
What’s worse is that most dealerships didn’t make that much of a profit from them. Buyers enjoyed low rates and long-term offers, but retailers suffered some losses. Even with that drawback, the market was on pace to get back on its feet by the start of 2021.
What crippled the industry further was the microchip shortage that followed. It hindered the production of every major car brand on the market. Microchips play a major role in the car’s functions, like the braking system and dashboard displays.
Most of the chips went into making more laptops and desktop computers. More people went to work at home during the pandemic, prompting the PC market to hit an all-time high.
Manufacturers would still release their vehicles only if the missing features weren’t essential. With modern cars having complex features, the new car inventory remained empty.
What about the materials manufacturers stockpiled beforehand, you ask? Assembly factories often order their materials in bulk and only get as much as needed. This left them unprepared for the shortage, leading to the empty car inventories we see today.
Which Brands Do the Shortage Affect the Most?
Brands investing in more electrical features in their cars suffered during this shortage. Japan, for example, has been attempting to reduce pollution by making cleaner cars. While it’s a noble act, it had a big impact on the country’s international trade, given that they have multiple car brands on the market.
So, expect to see fewer cars from Nissan, Subaru, and Honda on lists like the Car-Mart inventory. Toyota isn’t as affected since they only use microchips for optional features.
European brands like Volkswagen feel the impact to a lesser degree. It only hindered three of their lineups so far. Other models don’t have many features that need advanced computing processes to work.
Even multinational brands like Sealants can feel the effects of the shortage. However, most of their vehicles can pass without the features that need the microchip. You can still find a Chrysler or Dodge on the Gates Auto inventory, but not as many as before.
Is There Any Help to Count On?
Yes, there is some help for you to look forward to. Automakers and the government are taking action to fill in the demand. By doing so, they make sure consumers have a good selection to choose from when buying cars.
Automakers are making due by prioritizing their high-demand models. It does come with the caveat that it won’t have as many features as cars manufactured before the shortage.
This means not all cars will have navigation, a stop-start feature, or an Active Fuel Management system installed. It means most customers can find a suitable car for a reasonable price, though.
On the government side, they’ve passed the Endless Frontier Act. The act focuses on the key areas of technology, mainly high-performance computing and artificial intelligence.
It also establishes a Directorate for Technology and Innovation. This ensures that anything produced must meet a certain standard during mass production. It helps avoid having a similar tech shortage happen within the country.
When Will the Market Stabilize?
Consumers can expect the market to stabilize by the fourth quarter of 2022. By this point, retailers and manufacturers would have caught up to the demand. If all goes well, manufactures would have made a profit, too.
It allows them to ease up on their prices, stabilizing the market once again for everyone. Before that, though, consumers must first get through Labor Day. This is when most car purchases occur.
The surge in cars sold during Labor Day will help with the manufacturer’s recovery. So, don’t expect many incentives when browsing the American Car Center inventory until then.
What to Do if You Need a Car ASAP
What if you can’t wait until the market stabilizes to buy a car? In that case, there are other ways for you to get one. The best way nowadays is to trade in your current vehicle.
A trade-in is beneficial for both sides. The buyer gets a car while cutting costs, and the retailer gets a car to sell or scrap. To do this, browse the used car inventory on reliable websites. Once you find one, compare the price between that and your current vehicle’s value.
Have the dealership check your vehicle’s value if you’re unsure. After that, all that’s left is to pay the difference, and you can drive out in your chosen car.
Know the State of Car Inventories Today
Learning about the state of car inventories allows you to determine how soon the market will return to normal. With this in mind, you can structure your shopping attitude to get the car you want with relative ease.
Do you want to learn more about the car market? With how unstable it is right now, getting all the updates can help you stay on top of the shopping scene. Check out more of our posts and articles to learn all you can today!