Computer chip crisis slowly improving, but still impacting vehicle market
PITTSBURGH (KDKA) -- The computer chip crisis is slowly improving, but is it making it any easier and more affordable to get a new vehicle?
KDKA's John Shumway went looking for answers.
Due to the COVID-19 pandemic, a lot of vehicles in the auto industry simply were not made.
Calvin Lane, the Platform Operations Director for #1 Cochran says the manufacturers are getting chips in cars again and inventories are growing.
"Nationally, it's a 45 day supply where, you know, at the, at the peak of the chip crisis, probably running a little bit under 20. In the total inventories of all vehicles last month, there were 1.3 million vehicles. Well that's about 2 million below the levels before the pandemic," Lane said.
CVS Automotive Correspondent Jeff Gilbert says while improving supplies will better meet demand, inflation is a growing factor.
"This is going to shift from a supply issue to a demand issue and sales will continue to be down probably through next year and beyond," Gilbert said.
The sales that were made won't be seeing much negotiating. In fact, on high-demand vehicles, Lane says the sticker price or MSRP isn't what it used to be.
"September ranked the 16th straight month car buyers paid over sticker price for for a car and that's based on again transaction data from Kelley Blue Book," Lane said.
#1 Cochran has adopted a policy of sticking to the MSRP, but Lane says incentives and discounts are rare.
"Expect the selection to be pretty limited and expect to probably have to wait and you're probably going to be a little bit surprised about what you're going to have to pay," Lane said.
Demand for good quality used cars is still high, although peak prices are cooling a bit.
There's no question that the pandemic has changed the way cars are bought and sold.