While floor-planning aid is down, according to industry data, it’s up on a per-car basis. Dealers have to pay interest (“floor-planning”) on unsold cars on the lot, although they have gotten factory assistance at times. In the past, a dealer had two-plus months of vehicles on the lot. Like the dealers they bought from, collectors are selling cars for well over what they paid. “It’s a classic case of supply and demand it’s not something any of us had anticipated,” he said.įor certain high-demand versions of the Ford Bronco, Ackerman said he’s gone to collector-car auctions in the recent past, where customers re-sold vehicles they just bought new. “To me, the demand seems so high right now, even when they’re able to start catching up on the inventory, between the rental car companies and fleet businesses and everything else, I just don’t see the demand settling until sometime into ’23,” he said.Īs for markups, “It’s on everything,” said Las Vegas Ford and Porsche dealer Gary Ackerman, dealer principal for Gaudin Motor Co. Individual buyers and fleet customers are now competing for new cars, says David Hult, president and CEO of Asbury Automotive Group, a dealership chain in Duluth, Ga. Individuals Compete with Corporate Fleet Buyers for Cars Zwickau is home to Europe’s largest EV factory. VW said the lack of Ukraine-sourced wiring harnesses will halt car production for much of this week at factories in Dresden and Zwickau, Germany. They supply factories in Ukraine and eastern Europe. Now, the Russian invasion has closed auto parts factories in Ukraine. Some analysts say the chip shortage will ease later this year. Through December 2021, the chip shortage cost North American auto factories more than 2.3 million units of production, according to AutoForecast Solutions. What’s changed since then, of course, is the Covid-19 pandemic followed by the shortage of semiconductors (chips). Volkswagen Latest Threat to Car Supplies: War in Ukraine That will add to the shortage of cars in the U.S. The reason: Unavailability of wiring harnesses made for VW in Ukraine in the wake of the Russian invasion. VW is suspending production this week at its Dresden and Zwickau factories in eastern Germany. Volkswagen ID.3 EV at the company’s Dresden, Germany, factory. “You may end up paying over, but you can say, ‘Fine, but can you give me something extra?’ They still come out ahead, but at least you’re getting something,” he said. “You should definitely ask them to do it,” he said. “People think they can avoid it, by buying the minivan instead of the SUV, but other people have the same idea, and the price goes up,” he said.ĭrury said customers may have to grit their teeth and pay above sticker price, but he encouraged buyers to try and negotiate some sort of sweetener, like maybe getting the dealer to throw in some accessories or add-on products like an extended service contract. Some other EV startups are following Tesla’s lead and will sell directly to customers. The Tesla Model Y crossover and Tesla Model 3 sedan are the best-selling EVs in the U.S. Tesla has raised prices in the past year, but the sticker price is exactly what the buyer pays. One last option: Buy an electric car from Tesla, which has no dealer network and no extra markups. Lead time is as little as four weeks for a car built in North America to 8-12 weeks for a car coming from Europe or Asia. If the selection of cars in stock is an issue, consider a build-to-order (BTO) car, optioned exactly the way you want it. Sometimes a buyer backs out of a delivery, and a car you want, in a color you can live with, is available for a day or two. Click here for a backgrounder on buying CPO.įor someone who can’t wait a year or longer to buy a new vehicle, the best advice continues to be to shop online across a wider territory than usual, be prepared to compromise on features and options and be prepared to act fast.Ĭheck back with dealers frequently. Walk into a dealer showroom and many of the new cars on the floor are really 2019 CPO cars. The most common CPO cars are models built and sold in 2019 before Covid-19 knocked down production. Certified pre-owned cars are in comparatively good supply in 2022.
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