Why is it hard to get a car right now?

Why is it hard to get a car right now?

We understand buying a car is challenging, particularly now. Why is it hard to get a car right now? There are roadblocks from production to delivery, and the cars aren’t here. But there are solutions!

Background to why it’s hard to get a car right now.

Semiconductor Shortage

Chips!

Let’s start with chips. Not the type you eat but the small components that go into almost everything from phones to cars. The chip supply refers to a global semiconductor shortage slowed by COVID-19. With slowed production and long-term shortages in the area, the increased demand for computer chips in cars is seriously outpacing the production rate. Unfortunately, fixing the supply issue is very complicated.

The chip shortage in car production refers to the current global lack of semiconductors or computer chips used in various electronic components of modern cars. These chips are crucial in managing and controlling multiple systems in a vehicle, such as engine control units, infotainment systems, and safety features like driver-assist.

When did it start?

The shortage began in early 2020 when the COVID-19 pandemic disrupted global supply chains, causing demand for electronic devices such as laptops, smartphones, and gaming consoles as people started working and studying from home. This surge in demand has led to semiconductor manufacturers prioritizing the production of consumer electronics over automotive chips, resulting in a shortage of automotive semiconductors.
The pandemic has also caused temporary shutdowns of semiconductor factories and transportation disruptions, further exacerbating supply chain issues. The situation has been compounded by the recent increase in demand for new cars, especially in the United States and China, as the economy recovers from the pandemic.

The impact

The semiconductor shortage has significantly impacted the automotive industry, with many car manufacturers having to slow down or halt production due to a lack of essential chips. Leading to reduced availability of popular models, increased waiting times for customers, and higher prices for new and used cars.

The future

In addition, the automotive industry is becoming more reliant on electronic systems in its quest to develop cars that keep pace with technological advances made and expected by the consumer. The outcome is demand for semiconductors has skyrocketed.
Furthermore, as the supply of cars decreases, the prices of both new and used vehicles have risen, making it more difficult for consumers to buy cars at affordable prices.

How to get a car stress free.

We recommend using a professional broker with a track record and good reviews on Google. We are proud of our 5-star google reviews; a recent review sums it up.

Loraine at Red Plum Automotive took the pain out of finding a car to meet our needs and budget. It took a matter of a few days for Loraine to find us the very right car, which was astonishing in the current market of having to wait months for the availability of what we were after. I highly recommend using a car broker such as we did from Red Plum Automotive. We are now the very happy owners of a brand new Hyundai Venue Active and very grateful to Loraine for saving us time and hard work. Thank you, Grace & John.

Image of our customer with new 2023 Hyundai Venue Active.

If you would like to learn more about how to use a professional car broker, we have written about it HERE

In Summary

The automotive industry is becoming more reliant on electronic systems. The outcome is demand for semiconductors has skyrocketed.

Furthermore, as the supply of cars decreases, the prices of both new and used vehicles have risen, making it more difficult for consumers to buy cars at affordable prices.

If you need a car quickly, we can help. Our dealer network allows us to find vehicles of any brand to which individuals would not have access quickly. We are in business to help customers get the right car at the right price. Use the form below to contact us, or leave us a message, and we will contact you.

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