Anyone here work in the auto industry? There is a shortage of new cars. Is it because
A. factories have been shut down due to COVID and having problems making production numbers or
B. further back in the production chain, parts from China are not making it into factories because of Just In Time inventory systems

Any predictions on when it will return back to normal?
Dave

All of the above. When I was involved in production for a couple of the "big three", it typically took 3-6 months to correct disruptions in the supply chain. This was almost always due to quality issues so this situation, just a refill of the pipeline, will most likely be corrected quicker than that.

Yes, but dealers are making a bigger deal of it on some models just to drive price up.
we've been running 110% production since June. Maybe we haven't made up the 6-7 weeks we were down, but it's not like there aren't cars to buy.

There's also, apparently, a shortage of used cars, at least in my area.

I've been watching the new car dealerships websites for a nice used car, 2 or 3 years old, preferably a Certified Pre Owned, and they are as scarce as hens teeth.

The especially weird thing is that I'm seeing very very used cars even offered for sale, and of that I'm seeing new car dealerships used cars offering of used cars with up to 240,000 miles on the odometer. Those cars, pre covid, would never have been put out for sale, they would been sent to the auction or sold directly to the low tier used car lots.

I am seeing more than the usual number of Repo's on my 2 Credit Unions websites. Of those, most all of those are priced way too high, IMO, and few are priced at a reasonable amount.

It's a crazy world.

A relative had a car wreck and it took FIVE DAYS to get a rental car, and this was after it was approved by the insurance co.
.

This message has been edited. Last edited by: OKCGene,

Most of the plants have been up and running since May / June. Mexico was impacted harder the US. They took a harder view of corona and didn't list the auto industry as essential so many parts factories were down and some are still on limited hours.

Around here most of the new car lots seem pretty full of inventory. The one exception is the Toyota dealer has no new trucks or bigger SUVs of any type.

I have been shopping to replace my 11 y/o car. First thing I noticed was across 3 brands and 4 models there were not more than 2-3 vehicles coming close, in 3 counties. I have asked for one to be ordered and it will arrive as a 2021.

I originally thought it would be a good time to shop for a deal. Turns out there are only a few vehicles made in overstocked quantities, none of which had interested me.

I bought a new Camry a couple months ago and the dealerships out here were packed with cars. The exception being Mazda 6’s seemed like vaporware (there was 2 total in the 5ish local Mazda dealers)

The Phoenix valley has a lot of dealers though so maybe it’s different in different areas. I would guess used cars would probably be down in the past couple months because a lot of people are out of jobs so dealers are selling less new cars for trade-ins and many of those that still have their jobs are working from home so they aren’t really going anywhere.

Bought a new Chevy Colorado pickup back in August. My best deal is Ray Smith just across the border in Idaho, west of me.

Plus he had a mess of varied models and colors , compared to the local dealers.


As time went by, fewer and fewer in inventory. I ended up buying a few weeks earlier than I had planned. Local stealers had few and all of them far more expensive.

The parts not getting to the assembly areas an issue too.

Dealerships around here had super low inventory for a few months, especially used vehicles. I took advantage of the shortage and sold my 2008 Tundra for what I thought was a crazy high price. Evidently I should have priced it higher because I got blown up when I listed it. Within hours I had multiple cash offers from people who had not even seen it.

Judging by the number of cars at the lots now it looks like inventory is becoming more available.

Production stopped or cut back, and supply chain issues were part of it, reduced inventories dues to fear of absent demand was another. Demand then went through the roof after about 6-8 weeks of lockdown. Pent up demand, stimulus checks, and the realization that if you were going on vacation this year, you were driving all contributed.

Used car shortages happened because the auctions shut down, people stopped trading in cars, and because dealers cut inventory in anticipation of lower demand. As a result prices went on a wild ride. In early March, prices crashed with supply swelling as owners attempted to raise cash and get out from under payments in the face of absent demand due to fear of historic sudden unemployment and economic downturn. 3 months later, those same cars were worth 30-60% more. Markets have generally normalized, inventories generally replenished, but still scarce in some segments and regions.

Staffing issues are definitely an issue right now, just read this article this morning

Auto Supply Companies Are Desperate For Factory Workers

I just bought a new car. Picked up a new 2021 Subaru Crosstrek sport. They had 40 coming on transports and had two on the lot. 30 of the cars coming were already which were already spoken for. Salesman said they are buying while they are enroute off the trucks. Sounds like I got one just in time.

quote:

Originally posted by OKCGene:
I'm seeing dealerships used car offering of used cars with up to 240,000 miles on the odometer.
.

Local BMW dealership keeps calling me and asking me to trade in and offered me way more than I owe. I have a 2018 with 68k miles on it now. Sadly, there's nothing new at BMW that I want that I'm willing to start another car loan again.

It doesn't appear to be an issue here in South Florida...... every new car dealer seems to be well stocked and the lots are full.

quote:

Originally posted by Chowser:

quote:

Originally posted by OKCGene:
I'm seeing dealerships used car offering of used cars with up to 240,000 miles on the odometer.
.

Local BMW dealership keeps calling me and asking me to trade in and offered me way more than I owe. I have a 2018 with 68k miles on it now. Sadly, there's nothing new at BMW that I want that I'm willing to start another car loan again.

Ive been thinking really hard about an X5.

I was at Toyota on Saturday for the longest service of my life (different story worthy of its own thread). We walked the lot. Only a few new on the lot. Going for full price plus “market rate adjustment” of $5k. No price negotiations according to the sales guy. He said the few new Tacos will be gone by Monday.

Used Tacoma’s are priced almost as high as new, was a total rip off.

2016 TRD Sport 119k miles 4x4 v6 $29k (yes, 119k on the clock)
2015 TRD Sport 70k miles 2x4 v6 $29k
2018 TRD Sport 12k miles 4x4 v6 $39,500 this one was CPO (certified pre-owned)

For reference, I bought a 2019 SR 4x4 v6 brand new for $29k out the door.

Total insanity.

quote:

Originally posted by jimmy123x:
It doesn't appear to be an issue here in South Florida...... every new car dealer seems to be well stocked and the lots are full.

The thing that really irks me about dealerships in FL is they all charge dealer fees between $500-800 per vehicle. At least they do in the Orlando area. You can negotiate it off but the fact it being there and charged for no reason to unsuspecting buyers really irks me.

That's one reason why I ended up buying out of state last time.

quote:

Originally posted by Edmond:

quote:

Originally posted by jimmy123x:
It doesn't appear to be an issue here in South Florida...... every new car dealer seems to be well stocked and the lots are full.

The thing that really irks me about dealerships in FL is they all charge dealer fees between $500-800 per vehicle. At least they do in the Orlando area. You can negotiate it off but the fact it being there and charged for no reason to unsuspecting buyers really irks me.

That's one reason why I ended up buying out of state last time.

Yes, most all of them do and most are closer to the $800......Mullinax (Ford) are the only ones that don't charge the dealer fee that I know of.

Went to my local Toyota dealer to look at the 2021 TRD 4x4 Off Road Tacomas. There were none on the lot. Presently drive an 18 TRD 4x4 Off Road. Disappointing.