Understanding the New Car Inventory Shortage

If you’ve been paying attention to the auto market, chances are you’ve noticed a new car inventory shortage. While Serra Traverse City is less impacted than most, thanks to our wide selection of new cars across multiple brands, in general, there are fewer new cars on lots around Bellaire than normal. Why is there a car inventory shortage? The current automotive situation is a direct result of the car chip shortage seen around the world. 

Automotive chips, also known as semiconductors, are needed to make modern vehicles. In fact, most new cars need more than 1,000 of these chips before they can hit the Kalkaska streets. So it’s no surprise that the automotive chip shortage has taken a toll on inventories. Fewer new cars are finding their way to dealerships, which means prices are on the rise. Review our tips below to get a better understanding of the new car inventory shortage.

The Origins of the Automotive Chip Shortage

What caused the car chip shortage? The outbreak of the COVID-19 pandemic had a potent impact on semiconductor manufacturing facilities. Shutdowns and slowdowns became the norm as the pandemic spread. This automotive chip shortage was coupled with an increased semiconductor need as household electronic sales skyrocketed. The perfect storm of supply and demand issues hit all at once – leaving manufacturers to play catch-up long after production has ramped up to pre-pandemic levels.

On top of the backlog of orders, semiconductor producers are having a difficult time securing neon and palladium. Both of these components are essential, so their absence injects an extra challenge into the car chip shortage disaster. 

When Will the New Car Inventory Shortage End?

The lapses in automotive chip production have already had dramatic effects on global markets. Unfortunately, the car inventory shortages may persist until 2023, 2024, or even later due to all of the roadblocks faced by production facilities.

Is There an Upside to the Car Inventory Shortage?

While it’s true that the new car inventory shortage has impacted the way dealerships around Lake City conduct business, many of the changes are positive! Since fewer new cars are available for immediate purchase, it’s now easier than ever to custom order your new car from the factory! This process means you’ll get the exact vehicle you desire and spend the exact amount your budget allows all while being supported by our expert dealership team!

With new cars becoming harder to find, this means many drivers are turning to the pre-owned market. While this makes for a bit more competition when you’re trying to buy, it also means that you will get top dollar when selling your current vehicle! Whether you trade to a dealership like your local Serra Traverse City location or sell your car on your own, you’ll likely get a better offer than you anticipated. 

Find the Perfect Vehicle at Serra Traverse City!

Now that you have a better sense of what’s happening in the automotive manufacturing industry, you can approach your next vehicle upgrade with precision. Whether you’re looking for a new or used vehicle, you’re sure to find your fit with Serra Traverse City. Since we offer seven brands, we have the flexibility to guide you to the perfect vehicle! Best of all, if we don’t have your dream ride in stock, we’ll help you place an order for an affordable model that suits your wishlist!