As the shortage continues, car prices are rising and many people are wondering when the shortage will be over and when is the right time to buy.
“I’ve never seen anything like it in my life,” said Alan Helfman, president of River Oaks Chrysler Jeep Dodge and Ram.
That lack of chips has changed the game he knows well. For starters, he only has a fraction of the inventory he had before the tiny bits of technology were so hard to come by.
Helfman says he would normally have 650 to 700 vehicles in inventory, but now it’s “probably 100[vehicles]”.
Less supply means higher prices. So if you’re in the market for a new ride, should you wait?
“If I were to personally make the decision, I would wait about 18 more months,” said Margaret Kidd, professor of supply chain and logistics at the University of Houston.
She said labor shortages and the availability of raw materials play a role in the current output.
“I don’t see it getting any better anytime soon. I’d say 18 to 24 months before you see those car lots full with all those beautiful colors and great choices,” Kidd said.
Kidd said there is light at the end of the chip shortage tunnel, but how we buy and sell cars could change.
“Americans are very spoiled and used to a lot of people trading in their cars every few years, and our new reality is that that’s a luxury,” Kidd explained.
She said automakers are focusing on their most profitable models, so there will be fewer choices.
“The new normal will likely mean a little less choice, but it will certainly improve from where it is today,” Kidd said.
A silver lining is when you have a used car for sale…
“We’re really low on used cars, so we need used cars, so we pay. We’re working on that. Especially if you have a nice, clean car, low miles, even with lots of miles,” Helfman said.
So if you are able to have one less set of wheels, you can make money while the chips don’t fall.
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https://abc13.com/car-shortages-buying-new-microchip-shortage-empty-lot/11866249/ When will the chip shortage be over? Should you stop buying a new car? Experts intervene