The availability of new vehicles has been at a historic low for the last year or so. This has taken a toll on prices. What’s more, the demand for new vehicles is moving into used vehicles and causing shortages there, too.
With cars being both expensive and hard to find, now, more than ever, it’s important to take proper care of the vehicles you own.
Why are prices so high?
We’ve seen inflated prices across many markets recently. Part of this has to do with the high price of shipping. Part of it is probably due to inflation, in general.
In new vehicles in particular, the micro chip shortage is having a serious affect. It seems that auto manufacturers have everything they need but chips for the electronics in their vehicles.
How long will this continue?
Expect the shortage to linger until next year, at least. Most reports say the chip shortage will go on into 2022 and potentially longer than that. Congress has shown interest in moves that would increase domestic chip production, but its not exactly the kind of operation you get up and going overnight.
The country will likely be dependent on overseas chip production for a couple years, and even then it's unlikely that domestic production will match the capacity we’re used to.
However, there are signs of relief ahead. Used vehicle prices are still exorbitant, but prices seem to becoming down at least a little in recent months. It’s only a matter of time before the imbalance between demand and supply starts to tip back. Those desperate for cars will eventually find them, and auto manufacturers will keep trickling units onto the market as they get their hands on chips.
Still, we may never see again see the vehicle prices that we once considered normal, so its time tore think our position as consumers. Do you really need a new vehicle? A lot of auto sales are driven by the desire for luxury and convenience, rather than need.
The real question is whether the vehicle you own now is going to be reliable in the months or years ahead. A good mechanic will be able to tell you if it’s in your interest to keep the car you have now. If your vehicle has a lot of life in it, proper maintenance and repairs are probably the most economical way to drive.
Auto maintenance and repairs in Des Moines, WA
Drivers in Des Moines can contact ABC Auto for repairs on just about anything, including motors, transmissions, cooling systems, and brakes.
Further reading:
Prices finally dropping?
Inventory will stay low till next year:
How the pandemic restrictions, the chip shortage, and rental car companies are affecting used car inventory:
Used car prices closer than ever to new car prices: