Chip shortage leaves car deals in short supply

Morning In America

CHICAGO (NewsNation Now) — Thanks to the silicon chip shortage caused by the COVID-19 pandemic, new cars are in very short supply, and that’s even driving prices of new cars through the roof. At times, it seems like the car market is mirroring the housing market, with people willing to pay premium prices for something that might not even fit their needs.

Nic Downey, sales and leasing consulting at White River Subaru in White River, Vermont, joined Adrienne on “Morning in America” to discuss the auto market and whether it’s possible to get a deal on new wheels.

Downey did not have great news. After saying that the car shortage looked to be stretching into 2023, he described the current buying process. “It’s really about putting your name on the vehicle that you want, which becomes difficult when you can’t take a test drive,” he said.

“About 95% of our people are going through the order process, in which we describe the vehicle they’re going to get and have them test drive something used that’s as close as possible to the one they want, then we take their order and kind of fall on the sword as we beg for the patience and wait for the vehicle to come in.”

And forget about haggling over the price of your new car. If you don’t like what’s available, there are dozens of people in line behind you who are more than willing to pay for it.

Downey estimated that his dealership had a total inventory of two new vehicles on the lot at the moment, out of a usual stock much larger, and said that the next delivery the dealership was expecting was already 95% sold.

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