Analysts predict that supply shortages and high prices will continue until 2023.
JOPLIN, Mo. – Buyers looking for a good deal, if not a decent deal, on a new vehicle over Labor Day weekend may have been disappointed once they got to the dealership.
“Normally at this time of year there are big discounts to help you move your inventory. But automakers don’t have to give them those big discounts right now because inventory is so thin, ”said Moony Starr, COO of Skyway Auto Group.
As of Monday, there were only nine new vehicles on the sales lot at Skyway Buick GMC in Joplin, when they would normally have between 40 and 50.
“I never see lots completely filled with new cars again. Because they [manufacturers] make more money with fewer cars on the ground, ”says Starr.
Parts shortages for new vehicles continue to plague the industry, with The Associated Press reporting that several Asian countries that are home to major semiconductor producers are being hit hard by the COVID-19 delta variant. Due to the parts shortage, General Motors and Ford have both announced the shutdown of one to two weeks of their manufacturing plants. Toyota announced last month that it would cut production by at least 40% in Japan and North America for two months.
Analysts say high prices and low inventories will more than likely last until 2023.
“The biggest challenge we have is losing customers who have bought from here over the years. They want another truck or a Buick Envision or whatever… we can’t get it, ”Starr says. “We want to sell you. It’s not that we don’t want it, we can’t get it. And there’s no trade with the dealers because if they have it, they’re going to keep it and sell it, and vice versa.
“I ordered one not that long ago, and we were supposed to have it at the beginning of August and it arrived towards the end,” says Cody Jackson, a salesperson at Skyway Buick GMC. “The customer was a little frustrated with us and there was nothing we could do. “
Thus, Skyway – and other dealers – rely on used vehicles. But Starr predicts that the supply of used vehicles could decline, especially in the coming months, after Hurricane Ida destroyed hundreds of vehicles.
“There are rental companies that put a lot of cars on the streets. Let’s say our guy we’re buying from is from Springfield. They won’t. They’re going to ship them all to Louisiana, ”Starr says. “The prices are going to skyrocket, and they’re going to be slimmer than they’ve been.”
So what can you do if you need to buy a new vehicle? Starr says look at the window sticker for any additional fees you can negotiate, and don’t feel pressured into buying a new vehicle with an MSRP exceeding the MSRP.
“Yes, you pay more for your car right now when the market is up, but who knows the future? This could be the future, ”says Starr.
According to Black Book, used vehicle prices have increased an average of 30% over the past year.
COPYRIGHT 2021 BY KOAM NEWS NOW. ALL RIGHTS RESERVED. THIS DOCUMENT MAY NOT BE PUBLISHED, DISTRIBUTED, REWRITED OR REDISTRIBUTED.