Across the country, dealerships are facing an inventory shortage. This shortage is due to a lack of microchips being produced that are needed to run vehicles. On average, there are about 200 of these microchips in a standard vehicle. Manufacturers like to have a 45 to 60 day supply of these chips, but most only have a 10 day supply.
Let’s learn more about why there is a chip shortage, how it has affected the automotive industry and why buying a repo car might be your best option.
What is the Chip Shortage?
During the COVID-19 pandemic, manufacturers cut back on their orders for microchips with the assumption that the car business was going to tank. Instead, the opposite happened. It took off. A lot of this had to do with the convenience of online car shopping – people were able to buy vehicles without having to leave their homes.
Not only were people buying cars during the pandemic, but also the demand for personal electronics like cell phones and laptops increased. These same chips are used in these electronics, so production could not keep up with the demand.
Fast forward to today and now car manufacturers have a bunch of cars fully built and ready to go to the dealerships but they don’t have the necessary microchips. Not only are dealerships low on inventory, but also they’ve had to increase their prices to help deal with the shortages.
Now is a good time to trade in your vehicle, but buying something won’t be easy. So what do you do if you need something reliable and affordably priced? Buy a repo car!
Why Repo Cars Might be Your Saving Grace
Not everyone can wait for a new car. Some people are buying cars before they even hit the lot, but if you need something safe and reliable to get you to work or school, you can’t wait. A better option is to shop for a repossessed car, or a car that has been seized from its owner for failure to pay.
Repo cars are often in good condition, though do expect to pay for some light repairs or maintenance. Usually when people aren’t making their car payments, they’re not paying for maintenance either. RepoFinder has a great selection of cars, trucks, SUVs, etc. that you can bid on for free!
Some of the benefits of buying a repossessed vehicle are:
- Incredible savings – pay a fraction of what you would pay through a dealership
- Fast turnaround times – our cars are available and ready to take home
- Motivated sellers that want to move their inventory – work out an even better deal!
If you’re not finding what you need through a dealership, shop with RepoFinder. We continue to update our inventory with fresh vehicles that are ready for their next owner.