What the Chip Shortage Means for Car Buyers

Everyone in the automotive industry is buzzing about the semiconductor chip shortage. Many plants have had to reduce or halt production as chip availability dwindles and we want to help our clients understand exactly how this could affect the automotive industry.

What caused the shortage?

The easiest explanation is that the pandemic brought semiconductor chip production to a halt for longer than expected. This caused the stock of chips to dip as electronics demand increased. As client demand for vehicles increased, demand for chips also increased. Another factor is the cost of silicon, which is used in both chip and COVID-19 vaccination production. All of these factors have led to a decrease in supply. In response, some automakers have curbed their production rates on some vehicles so that they can continue to produce others. 

What does this mean for car buyers?

Simply speaking, inventory at many dealerships will be down. It could be difficult to find the new car you want most, but that doesn’t mean it will be impossible. Here at MotorWorld | MileOne Autogroup, we’re dedicated to finding you the car of your dreams. Our experienced team can assist you in navigating the process of building your own model, exactly as you want it, and ordering it directly from the manufacturer. 

The news isn’t all bad for those in the market for a new car. Due to production issues, the pre-owned vehicle market also has a high demand. If the new car, truck, or SUV you’ve had your eye on is available in the MotorWorld | MileOne Autogroup inventory, we would love to make an amazing offer on your trade-in vehicle. This is a great time to maximize your investment by trading in your gently used vehicle. 

News outlets are reporting that the chip shortage could lead to the automotive industry suffering in the next year, but if last year has taught the MotorWorld | MileOne Autogroup team anything, it’s that the automotive industry is very resilient. We’re here for you on the road ahead.