Shortage of new cars expected to last at least a few months
SIOUX FALLS, S.D. (Dakota News Now) - For those shopping for a new car, you may have noticed fewer options at lots. This is the case across the country due to a shortage of new cars.
Jason Hanson, the general manager at Schulte Subaru, says several factors have caused the car shortage.
“When COVID hit manufactures weren’t sure how many cars they should produce everybody wasn’t sure what to expect, so they produced less than they probably should have,” said Hanson “The second thing is we have a microchip shortage going on that’s affecting all manufacturers, in a Subaru, there is 17 or 18 of those microchips in every single car they produce.”
The car shortage could last a few months. So, for those looking to get a specific deal, waiting might now be an option.
“Normally we have about a 90-day supply of new vehicles, meaning if they didn’t send me another one the cars, we have here would last us about 90-days,” said Hanson. “We’re expected to get down into the teen’s day supply in the next 60-90 days, so you are definitely going to notice a difference on the lots.”
The shortage has also made it harder for used car dealerships to keep up as well.
“It’s really getting hard to get more cars, they say by June we may be close to empty,” said Mike Wendt, owner of Empire Auto Sales.
If you’re looking to sell a car, this may be the time to do it. The new car shortage has helped those looking to trade in their old cars.
“Trade-ins are going up because of course, we need your cars, so if you got a car you want to trade-in, bring it in because we need it, older cars, newer cars whatever all over the board,” said Wendt.
The price of used cars which normally goes down is actually doing the opposite.
“If you have a car, you are looking at trading in you might be surprised what it’s worth all used cars have really gone up in value some of them we booked out 6 months ago customers have come back, and that car is worth $15,000 more than 6 months ago,” said Hanson.
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