shortages

Auto sales nosedive in Q3 as inventory dries, supply shortages worsen

U.S. car sales have dipped to levels not seen since the Great Recession as ongoing supply shortages hamper automotive production worldwide, strangling inventories while dealers attempt to salvage whatever revenue they can by increasing margins on the few vehicles they’re able to stock. 

Even a careful perusal of Q3 and September sales figures (Automotive News subscription required) reveals virtually no good news; even Toyota’s slight improvement is tenuous at best. While many raw materials and basic components have been in short supply since the pandemic crippled worldwide logistics, the primary culprit in the ongoing automotive production slowdown is computer chips. While some have been quick to point fingers at electric vehicles and other high-tech offerings, the shortage hasn’t really discriminated.

As of the end of September, the industry is still up more than 13% compared to a year ago, but there’s a catch: Sales through Q3 of 2020

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How a perfect storm of shortages and rental car chaos sent used-car prices skyrocketing

Cars sit outside a used car dealership with spray paint on the windows advertising the vehicles.

Used car and truck dealers have bought models for more than their original sticker price. Jim Watson / AFP via Getty Images

  • Used-car prices have skyrocketed over the last year.

  • A supply crunch in new cars is spurring demand for used models.

  • Prices may not return to normal for at least a year, one expert told Insider.

  • See more stories on Insider’s business page.

If you’re looking to get a sweet deal on a used car to take advantage of the warm summer weather, it’s not going to happen.

The market for secondhand cars is absurdly and unprecedentedly hot right now. Used vehicles went for a whopping 40% more in June than they did before the pandemic in February of 2020, according to data from JPMorgan.

The average nine-year-old car changed hands for $13,250 in June, according to automotive research site Edmunds. That’s a 30% hike over the same

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Inventory Shortages Drive Car Shoppers to Neighboring States: Cars.com Reports 10% of Recent Buyers Traveled Across State Lines to Purchase a Car | News

– June 10, 2021

Car Supply Shortage Squeezes Sellers and Shoppers as Cars.com Finds Nearly 1 in 3 Recent Buyers Drove 100 Miles or More for the Car They Want1 

CHICAGO, June 10, 2021 — According to recent research from leading digital automotive marketplace and solutions provider Cars.comTM (NYSE: CARS), nearly 10% of recent car buyers drove out of state to purchase their desired vehicle, with more than half (52%) of those traveling 25 miles, nearly 20% traveling 50 miles and 13% of buyers traveling more than 250 miles to a dealership due to ongoing new- and used-car inventory shortages.

“With the current auto inventory challenges, recent car buyers are going to great lengths to find the car they want,” said Kelsey Mays, Cars.com assistant managing editor, news. “I don’t anticipate this trend slowing down, either. Of consumers currently in the market and shopping for a car,

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Car shopping isn’t likely to get easier, as chip shortages deplete auto dealers’ lots

For the next few months, Charlie Gilchrist figures his 11 car dealerships in Dallas-Fort Worth will sell just about every new vehicle they can get from the factories — and at increased prices.

In normal times, that would be cause for joy. Not so much now.

A global shortage of computer chips has forced automakers to slash production. The result has been far fewer vehicles on dealer lots, just as the waning pandemic has fueled pent-up consumer demand for cars, trucks and SUVs.

With shrunken supply and robust demand, dealers like Gilchrist could sell many more cars and trucks, if only they had more. Even at elevated prices — the average new-vehicle sales price tops $40,000, up nearly 10% in two years — customer demand exceeds supply.

“It’s pretty evident when you pull onto our lots that there’s not much selection,” said Gilchrist, whose lots carry brands ranging from General

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