Are You Looking For a New Car? You Might Need To Be Patient

While it may seem like some sort of normalcy has returned to the automotive industry, that isn’t exactly the case. There are still numerous supply chain issues and lopsided demand, so most dealers are still hurting on inventory. That could spell problems if you are looking for a specific vehicle but if you are patient you might find some excellent deals out there.

The industry typically uses something called day’s supply to judge inventory levels for both new and used vehicles. According to Wards Intelligence days supply of light vehicles (aka the type of vehicles you and I drive) dropped by almost half. That may not sound like a lot, but it is. In simple terms, it means there are fewer cars to meet demand.

Trucks, in particular, have seen some of the lowest inventory levels in history. But unfortunately, all that means is someone looking for a truck will have a hard time finding exactly what they are looking for. Light cars are a mixed issue. Demand is still what it was but manufacturers have diverted crucial resources to keep producing higher-margin vehicles like trucks and SUVs.

Supply Chain Issues Leading to Low Vehicle Inventories

The Covid shutdown kickstarted this supply issue. No one knew how susceptible the auto industry’s global supply chain was to something like this because something like this has never happened. Unfortunately, things have not bounced back as some hoped.

Demand did decrease in the middle of the lockdown but rebounded quickly. The quick recovery of vehicle demand has kept inventory levels low. That is true for new and used.

Auctions closed down during the peak of COVID. When those auctions started back up, cars began slowly making their way to dealer’s lots only to be sold due to pent-up demand.

Where are the deals?

Not every vehicle has seen the same success. There are some models out there that demand hasn’t picked up for one reason or another. There are also dealers out there, *cough* Donohoo Chevrolet *cough*, that continue to price their new vehicles aggressively to earn more cars from the manufacturer. Our inventory at Donohoo Auto is reliant on finding vehicles that fall through the cracks. Our buyers specialize in finding value in an industry rife with overblown demand. That is one of the reasons we have more inventory than most and better prices to boot.

Take your time shopping for your next vehicle. Don’t overpay just because of the inventory shortage. It may mean being patient, or it may mean paying more if you are not.

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