Is the Vehicle Inventory Shortage Over?
For the past few years, it’s been easy to see the effects of vehicle inventory shortages that began in 2020.
The COVID-19 pandemic played a large role, due to people staying home in the early stages. This caused vehicle manufacturers to falsely believe there would be less demand for new cars. Therefore they ordered drastically fewer semiconductor chips required to build them. When this mistake was realized, the only solution was to wait for inventory. This wait was longer than simply the delivery time between order and receipt, however. These chips are used in a large amount of electronic devices across several industries. Demand was high, and supply couldn’t meet it, causing the domino effect that reached around the globe.
The effort to keep up with the demand for new cars and related vehicles has been made more difficult because of continuing supply chain blockages. Additionally, vehicle manufacturers have suffered because of ongoing lockdowns in China, where many components used to make vehicles are designed and manufactured.
The Current Vehicle Inventory Status
It’s been three years since these issues began to arise. Is there still an ongoing car inventory shortage in 2023? Unfortunately, There’s not a straightforward answer to that question. However, the much-needed microchip is becoming easier to obtain. This has generated slow improvements to the supply-demand element of determining the car inventory status.
It’s all a bit of a balancing act for manufacturers. However, recent data shows a higher level of inventory available and increased car production rates. We at least see a light at the end of the tunnel!
How Dealerships Can Overcome the Inventory Shortage
In the meantime, there are a few ways for car dealerships to overcome the inventory shortage:
- Maintaining strong marketing efforts to build client interest and encouraging customers to pre-order their vehicles.
- Whenever possible, car dealerships should consider replacing existing manual work efforts with technology to optimize both marketing and vehicle sales efforts.
- Keep inventory fresh by having a mixture of both used and new cars sitting on the lot. If a dealership keeps moving cars around, potential customers will consistently see variety.
- Keep the cars clean! Customers appreciate a shiny vehicle complete with that new car smell. This is an especially vital season to heed this advice, as pollen often coats vehicles.
Will Car Inventory Get Better?
Indicators show new car inventory statuses are slowly improving. Dealerships have more on their lots, and experts expect to see a continuing increase in both new and used vehicles available.
At Bay Motor Finance, we’re still here, and we’re always available to serve you as a dependable partner. We offer you a wide range of loans, warranties, and other services to help you finance and care for your new vehicle. In short, Bay Motor Finance is here for you!