FERNDALE, Mich. (FOX 2) - The US economy rebounding from the covid-19 pandemic - but as customers look to speed the global microchip shortage is causing some major headaches at car dealerships.
A new car shortage - is leaving lots empty - and forcing buyers to look elsewhere.
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Supply chain chip problem impacting new vehicles leads to hot used car market
The US economy rebounding from the COVID-19 pandemic but as customers look to speed the global microchip shortage is causing some major headaches at car dealerships. A new car shortage is leaving lots empty and forcing buyers to look elsewhere.
Eugene Hughey is asking people who lease cars the same question a lot these days: "Would you like to get into another car for the same monthly payment or less?"
Since becoming the used car manager of Suburban Buick GMC in Ferndale a few months ago, he's tripled his inventory. at a time when cars - both new and used - are a real hot commodity.
"The surge of customers out in the market vs the lack of inventory is because of the chip," Hughey said.
We've been hearing a lot about the chip during the pandemic with a global shortage in computer chips prompting manufacturers to slash production.
"I think used cars are the way to go right now," he said. "I think (in) 2022 I think the chips won't be an issue, it is more of the 2021 models. Right now a used car is a great value still."
And whether it's new or used, buy or lease, the demand is high.
"There's an influx of cash going into customers' hands, especially coming out of tax season, the stimulus, the tax money," said Hughley. "We've been pretty fortunate to be able to get our own inventory.
"It's definitely a struggle trying to get the car on your dealership lot at the right dollar amount so that you are still making a profit on your cars."