A few years ago, my wife got a pretty significant raise. We decided to lease, since we have a son who was getting his license, and would use my wife’s old car. We wanted to stay within our monthly budget.

Our lease expires in August, but my wife had received emails from the sales person we dealt with. We decided to go look, and they had nothing on the lot. This is not a small dealer, usually 300+ vehicles in the lot. I was specifically looking for a 4Runner. They had nothing on the lot. I have a friend who works at a GMC dealer in another state, and they are going through the same thing. No vehicles. A customer of mine ordered a Tacoma TRD in November, he didn’t get it until March. We ended up getting another Highlander, but the wife is happy.

If you on the fence about getting a new vehicle, you may want to do it now. Sign of the times...

Every manufacturing industry is going through the same thing currently. Low supply due to a number of factors, including decreased production from supply chain and logistics issues and insufficient numbers of trained workers, and backlogs of orders and pent-up demand.

The pandemic has created a chip shortage. Production of new cars won’t be at full speed until mid 2022

We recently drove by the Honda, Ford and Toyota dealerships. All look like they’re going out of business.

Bought a new Ford Bronco Sport 5 weeks ago. When I first talked to them, they had 6 on the lot. Two days later, they had one, and fortunately it was the one of the six that I liked so I bought it.

They're probably going to be scarce from now on.

If worse comes to worse, you can call the leasing company and usually extend your existing lease 1-6 months at the same monthly payment/terms.

The local Ford and Chevy dealers have almost empty lots.

Now is not really the time to be buying because the dealer knows the supply is low.

Just another reason I don't like to lease.

Why not just buy it, then sell it when chips become more abundant?

Kentucky Motor Speedway is your typical NASCAR track. Ford Motor Company is paying them god knows how much money to park Ford trucks in the parking lots. There's thousands of them. Ford can't get the chips to finish them.

I understand that cars may be in short supply, but how many buyers (not necessarily the OP) absolutely need a car.....today?

If they aren't budging on price or they don't have their model in stock, wait.

My wife ended up getting a new lease a month early due to limited supply. Turned the old car in and just paid the last month payment.

The new car dealer said they are 60 cars short in inventory and are only expecting another 20 cars to last them through the summer.

It would be a great time to buy your leased vehicle, you have a guaranteed lease end value you can buy it for and it's probably less than it's worth right now

^
BigSwede, I loved our last vehicle. Unfortunately it was involved in a hit and run, and very extensive damage. It was repaired, but I just felt the vehicle was "tainted". Who the hell backs into a vehicle and causes $5000 worth of damage, and drives off??? It took awhile, but we tracked down the individual. But it took the police officer several attempts to tell him he was going to jail if he did not come back.

If we could have found a 4Runner, I would have purchased. Not sure if my wife would enjoy driving it until it's paid off, but at that point it would be my vehicle, and she'd get something new. I tend to run vehicles until the wheels fall off, but we use the wife-mobile for traveling, and I want her to feel safe. Plus we have state and emission inspections. Other than tires and brakes, we are covered.

They had a Tacoma on the lot. By the time I asked, it was sold. Then they had two more dropped off. By the time I asked, sold. Salesman said people are flying in from out of state to buy Tacoma's. I don't believe he was lying. They had a beautiful TRD with a manual. But my wife won't drive a stick. By the time I asked, it was sold.

I get that but I'm betting you could purchase it for the lease end value and immediately turn around and sell it to a dealer for more, even more if you took the time to sell it yourself. Used car values are stupid right now

And yeah, we are selling them as soon as they hit the lot or before, I have several sold that are in transit and some that are not even built yet as well

My commercial inventory is pretty good though, only because I committed to taking several hundred units only to have most of the orders cancelled and still ended up with more inventory than I was comfortable with but we are selling them quickly. We are even getting customers referred to us by other dealers because they cant get the commercial units and they know I aint trading

I'm buckling up for this bumpy ride

Have friends and family in the industry, if you want new, buy now, and be prepared to pay full MSRP.

Dealers are very concerned about the summer, all the major manufacturers are predicting that production is going be short based on there being no chips to make the computers that run the vehicles. The scuttlebutt being there will be few if any new vehicles available after the summer.

Right now dealers are looking to buy up top level used and off lease vehicles. Off Leases are bringing big bucks, better cars, newer, if you have a lease it's entirely possible its worth more than your payoff.

Might be best to see what the payoff is and buy it at the contract price then trade or sell.

The big gamble is do you fill up your lot with top level off lease and used cars so you have inventory to sell, or, wait to see if new car production falls to near zero or rebounds.

Make the wrong decision and your dealership may prosper or close. Buddy works for one of the larger used vehicle auctions, they have closing sell rates in the high 90% now, basically everything that is worth having is selling. Only the junk gets tossed out.. It's a record year...

A shortage of computer chips (and other materials) is making new cars scarce. Be prepared to pay full price.

quote:

Originally posted by BigSwede:
I get that but I'm betting you could purchase it for the lease end value and immediately turn around and sell it to a dealer for more, even more if you took the time to sell it yourself. Used car values are stupid right now

You would think that but it might only apply with certain vehicles. My wife turned in a 2019 Jeep Cherokee Limited with only 16k miles and it was not worth the by out price. Two dealer confirmed this.

quote:

Originally posted by Russ59:
I understand that cars may be in short supply, but how many buyers (not necessarily the OP) absolutely need a car.....today?

If they aren't budging on price or they don't have their model in stock, wait.

A lot of people lease so they get you coming back even when/if you don't need to.

I had to change from my first choice, as they, GM, would not make the car I ordered. They continued making the model, but with all the packages at 10-12K more than the simpler car I wanted. No communication was my big issue, just tell me you cannot order, instead of making me wait 4 months and then saying no.

I changed brands and purchased in Feb, and even that car is in short supply.

Covid crazy mandates have caused much more chaos than just masks. Lumber, bicycles, appliances, cars, booolittz, you name it