OK, I took a look at how the chip shortage has affected two of our more popular local dealerships here in the suburbs of Portland Oregon.
Beaverton Honda (quantity available)
Civic - 0 (and 2 "in transit")
CRV - 0 (and 10 "in transit")
Accord - 2
Wilsonville Toyota (quantity available)
Corolla - 0
Camry - 1
Rav - 1 (highest trim level with MRSP of $40K)
This is a small sample size, but normally there would be dozens and dozens of all make and models. In checking other listings, the more expensive models or trim-lines have slightly more quantities available. Slightly.
And here, they are still demanding 5-8k more per vehicle than last year, especially pick-ups. And I don’t think this is limited to carmakers. The big boys are pumping this profit wave for all its worth. It might be the new corporate business model. Make less merchandise and sell it for more. Maybe I’m being an uneducated conspiratorial theorist. Thankfully flashlights are still reasonably priced.
I was lucky and decided to buy a new SUV back in May 2020 when the warnings were sounding on some of the automotive blogs about the looming parts shortages and rising logistics issues. This was just as the US new car market was trying to recover after the nosedive from the first few of months of lockdown. When I went for the test drives, most dealer lots were still full and even had some last model year clearances they were desperate to sell. When I went for an oil change last month, the lot was so empty, I thought they were ready to close down. Then on the way home, I saw that many dealer lots which used to be full were now mostly empty. I’m lucky enough to work from home 100% and hadn’t actually noticed the decline since I wasn’t thinking about or passing them on a daily basis anymore. I’ve spent more time lately looking for and trying to buy a new high end GPU at less than 300% MSRP than I ever did buying a car! We can only hope things “start” to go back to normal in the next 18 months, though I’d rather not go back to the 45 minute each way daily commutes for work.
Only the extremely high end and boutique makers can survive in that type of market where there aren’t as many qualified buyers. There are so many competitors in the typical mid range car market that there will always be someone willing to ask less for each, but sell many more, when they actually can. The housing market is in a similar state, not as many for sale and the ones available are going for much more than asking! The competition from buyers are driving up the prices in all types of low supply high demand markets. Remember the great TP and sanitizer shortage of 2020? Paradoxically gasoline was the cheapest in decades, but the typical consumer couldn’t capitalize on it because we couldn’t use it!
What a pleasant idea. Leave the USA, buy a car, and drive/ship it home, and have a little time off in a foreign land. I like it. Where is “here” samgalax?
Just the other night I was watching CNBC on car sales and how the average American is holding off to buying a new car, but sales haven’t slumped. That’s a contradicting statement, posed for longer viewing time. After a few minutes of them not answering the 30-40 k$ question, I quit the charade.
Now I can see production went down. Prices went up to compensate.
fewer sales reps since there are not enough vehicles (NO trucks at all)
on the lots to justify the personnel which also includes the used cars deficit.
it is the same with the super-hot real estate market…very limited inventory.
buyers are bidding “unseen in person” and double-digit outbids are common.
Well, I priced something like a Ford f150 4 years ago, and you could get one (V8 4x4) with around 60,000 miles for around $19,000. Now that same truck with higher miles (like 110,000 miles) is around $18,000-$20,000. Madness! Even a 6 year old Tundra is $24,000. That’s crazy, but try to buy one new (top trims start at $50,000 and go up). Even a Honda Civic is pretty expensive. Just like houses. I probably won’t be able to buy a house anytime soon unless I move. Pricess here are outrageous!
A realtor friend “warned” me to try to sell my house (via anyone, not just her) before the big price dip that seems to be coming in the next few months. I said great, ’cause then I’d afford to buy, vs the feeding-frenzy the past coupla years.
Nissan has basically skipped the 2021 model yr, and has rebranded everything 2022. Ford still has 10’s of thousands of 2021 F150’s in parking lots all over the country because they can’t get chips for the electronics, and the 2022’s are due now.
I was fairly seriously considering a midsized pickup at that time. I test drove a Ford Ranger that listed for something crazy like $7,000 under MSRP.
I ultimately decided to stick with a compact car since my use is overwhelmingly commuting, but kind of wish I hadn’t. The Rangers are now listing for $3,000+ over MSRP. I could have driven it for 12-18 months and sold it for a profit, then bought a compact car for also a few thousand over MSRP, but been ahead overall.
