We will be closed on July 4th in Observance of Independence Day!
As I mentioned in my previous newsletter, the microchip shortage is real and has caused shipments of new vehicles to dealers to come to a pedestrian crawl. We’re still getting deliveries but not nearly as many and obviously not fast enough.
While just about every auto maker is faced with this, the microchip shortage is just that, a shortage. The supply hasn’t completely dried up, chips are still getting made and installed into new vehicles but at a much slower rate than we’re all used to.
We’ve learned a few microchip production lessons along the way, but people ask all the time, “when is this going to end?” That question seems to have a different answer every time someone attempts to answer it. I too have my own opinion. Yes, Covid played a role in this. The original Covid outbreak (March of last year) more than likely started it. Chip factories did shut down and had somewhat of a stockpile of chips at the time, so they figured catching up would be no issue. That unfortunately hasn’t been the case. They’ve gone through their stockpile and a few manufacturers have had to shut down again due to other Covid outbreaks. The catching up part hasn’t caught up, so to speak.
VW did a really good job in the beginning at predicting this and pushed their microchips over to higher volume model lines so they could continue sales at a somewhat decent pace. That too has slowed down. At first, we’d sell 100 new Volkswagen’s in a month and VW would ship us about 100. Then the summer months arrived and we’d sell 110-120 or more but VW’s shipments went down from 100 to 60 to sometimes only 40 per month. Obviously, this created a lot of visible empty black top on our lots.
So, back to the title of this article: How to buy a car when there’s no inventory? Every auto manufacturer has some sort of “turn and earn” allocation system if you will. The faster you sell them, the faster they’ll send them. The cars (trucks/SUVs included) are still getting produced, albeit at a much lower rate, but they’re still coming. Being that the selection on the lot keeps shrinking, we have been forced to sell from the “incoming pipeline”.
If we do not have exactly what you’re looking for, chances are, one is incoming (or very similar) and will be here very soon. We take a $500 deposit and that gives you first right of refusal. Obviously, we won’t contract you until you take delivery but it’s a way to get a vehicle. If you change your mind or simply do not want it when it arrives, we give you your deposit back and sell it to someone else (usually the same day).
Like many other things in our lives these days, the auto industry is changing rapidly. While none of us can predict the future, what we can do is continue to offer the best sales and service experience possible.
Because some things out of our control may change, our commitment to exceeding your sales and service experience remains our top priority.
Stay safe,
John Chauvin, General Manager
