Navigating The Chip Shortage

Navigating The Chip Shortage

by admin, February 28, 2022

Navigating The Chip Shortage

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The car industry has been grappling with the chip shortage since the pandemic started. Experts are saying that we could potentially see new car levels balance out better with demand in the second half of this year. However, in terms affordability, it will probably continue to be a slog. It could be like this until 2023. That being said, today we are going to give you tips on how to navigate the chip shortage that might not be over until next year.

To begin, keep your options open. While the chip shortage impacted the industry as a whole, it affected some brands more than others. Brands like Kia, Honda, and Toyota faced instant shortages of new vehicles to sell. Brands like those were left with 20-21 days’ worth of new cars to sell. On the flip side Alfa Romeo, Jeep, and Dodge saw 70-100 days’ worth of new cars to sell. So, if you can keep your options open then finding a new car will be easier than you think.

The next thing we advise is to shop everywhere! Keep looking and do not lose hope. In a normal market dealerships can trade with one another to get the car you want. But with every dealership low on vehicles to sell, it is not that easy anymore. Use the manufacturer’s website to locate a car you want, even if it is not nearby and do not be afraid to travel to pick it up.

Lastly, if you can…just wait. If you want to save money on a new car, do not buy one. As mentioned before, the market will probably normalize by this time next year. Sure, conventional wisdom tells us that there comes a point when putting new parts into an aging car is counterproductive but times are not normal right now. Fixing your car should be your first option and will honestly save you money if you can wait. The simplest and easiest thing to do is wait.

Like the pandemic, this chip shortage seems never ending but trust us when we say it will not be that long before things start to get better. Even if it does take one year, at least there is an end in sight.

For more information on navigating the chip shortage please reach out to us here at Midtown Autoworks.