Car shoppers feeling the pinch from COVID-19 due to global computer chip shortage
PHOENIX - A global shortage of computer chips is starting to hit the automobile industry, resulting in reduced supplies of trucks and SUVs, which means buyers might find it more difficult to buy the vehicles they want.
Analysts say the COVID-19 pandemic is to blame for factory shutdowns, computer chip shortages and rising prices.
"The demand for cars is definitely a lot higher than it was a year ago, and this is coming off of a pandemic that caused the shutdown of entire cars, or components of cars, like chips," said iSeeCars.com Executive Analyst Karl Brauer. "People are having to pay more if they find the car. Sometimes, they can’t even find the car."
The difficulties in finding the perfect vehicle, however, have not hindered sales. "We're up about 15% on a year-to-year basis, and we’d be up more if we had more inventory," said Sanderson Ford General Manager Mark Witthar.
A West Valley dealership is stocked with more than 800 vehicles on the lot and certain models are selling out faster.
"People are really interested in trucks and SUVs. There’s been a big migration away from cars," said Witthar. "We have F-150s, but we might not have the individual model or content or the right color. That’s where it creates some challenges for us."
Ultimately, the bottom line for buyers is they should expect to pay more and expect to have to drive to a dealer further away than they may have expected.
"We've seen prices up between 5% to 10% for new cars, and 10% to 15% for used cars, so your bargaining power as a buyer doesn’t exist right now. It’s going to be harder to negotiate," said Brauer.
Car buyers looking for a vehicle at a competitive price may find better deals on sedans and compact cars, which are not in high demand.
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