If you’ve gone shopping for a new or used car lately, you’re probably very familiar with the chip shortage. Since the COVID-19 pandemic hit, car shopping has been a rollercoaster ride. First, the pandemic prompted many dealership showrooms to shut down, and both demand and production plummeted as a result.
To bring in sales, automakers quickly responded with incentives and financing. The plan worked – probably too well. Consumers snatched up vehicles faster than automakers could produce them. Combine that with a global chip shortage and now inventory for new vehicles has significantly decreased.
So how long is the car chip shortage expected to last? And when can you expect car shopping to return to normal? We answer your questions below.
How Long is the Chip Shortage Expected to Last?
Reports are saying that the chip shortage will last until 2022 or 2023. To try and work around the shortage, dealers are encouraging customers to order the cars they want in advance. With a hefty deposit and a bit of patience, shoppers can have their vehicle delivered rather than buying it straight out of inventory.
If you need a car right away, it’s recommended to shop outside of your local area and be flexible on the features you want. Unfortunately there are not enough vehicles to meet consumer demand, leading to high prices and a low selection. And it’s not expected to get better for a long time. Flexibility is key!
What Other Alternatives Do Car Buyers Have?
If you need a reliable vehicle sooner than later, a better option is to shop for a repossessed vehicle. RepoFinder has the largest database of repo vehicles, including SUVs, pickup trucks, luxury cars, sedans and recreational vehicles like boats and RVs.
Banks, lenders and credit units sell their vehicles directly on our site, which means the transaction is between you and the seller – no middleman. These sellers are highly motivated, so you can usually work out a deal with them.
While a repo car purchase is not for everyone, it’s definitely worth considering if you need a quick, reliable vehicle to get you to and from work. And you don’t have to worry about chip shortages, putting down a deposit for a vehicle you won’t see for months and so forth. You can pick out the car you want and take it home right away!