The pandemic is impacting industries worldwide, notably people who depend on high-tech microchips for his or her merchandise. With pandemic-related shutdowns, the availability of microchips is low, one thing hitting the automotive trade notably arduous. All automotive producers are seeing pandemic-related shortages of microchips, main some to stop manufacturing of sure automobile fashions or produce the autos with out crucial elements that want microchips.

Regardless of pandemic-related shortages, there’s demand for vehicles, and automobile gross sales are up. Because the pandemic has begun to ease, key tradeshows are being held once more in particular person for the primary time in two years. One among observe is the SEMA tradeshow, the place automotive producers historically exhibit new autos and closely personalized autos to the lots.

Automotive producers worldwide are looking for methods to cut back dependence on microchips and acquire uncooked supplies wanted to assemble autos which might be in demand. An attention-grabbing revelation from SEMA VP of product growth and OE relations Mike Spagnola is that regardless of the availability chain is at the moment struggling, enterprise has been robust as a result of many individuals caught at house and selected to work on their vehicles. That has led to robust gross sales for a lot of aftermarket suppliers to the automotive trade.

Shortages of microchips and supplies have additionally impacted these aftermarket producers. Many construct components that automobile house owners add to their autos to extend efficiency, functionality, and magnificence. A consultant for the SEMA present has acknowledged that they count on shortages to proceed into subsequent 12 months, however producers are working to get round shortages, and there are vehicles for drivers to purchase.

Relying on which space of the nation you reside in, there is probably not many vehicles to purchase, as anybody pressured to buy a brand new automobile in current months can attest. Typically exorbitantly excessive costs for used autos are forcing many customers to hunt out new autos as a substitute. As a private instance, lately, my spouse’s 2014 Ford Fiesta, a mannequin infamous for transmission points, suffered a transmission failure. We stay within the entrance vary of the Rocky Mountains in Colorado, and her commute takes her via a mountain go the place there isn’t any mobile protection, and frigid temperatures can result in loss of life for stranded motorists.

Somewhat than danger one other transmission failure, we opted to purchase a distinct automobile. In lots of cases, costs on used vehicles had been on par with what they value brand-new regardless of being a few years previous and having tens of hundreds of miles on the odometer. We determined if we needed to pay new-car cash, we’d merely purchase a brand new automobile. Nonetheless, inside 500 miles, the availability of economic system vehicles within the $25,000 or much less vary was extraordinarily tight. There have been no new Toyota Corollas, Hyundai Elantras, Honda Civics, or Kia Fortes inside 500 miles. However we had been capable of finding a midrange Nissan Sentra SV promoting at MSRP with no reductions, however it was the identical value as used fashions with tens of hundreds of miles on them.

The upside with the chip scarcity is this can be a nice time to promote a used automobile. For those who’re caught in a lease or mortgage for a automobile you don’t like, many automotive sellers are keen to spend vastly greater than they usually would to purchase out a lease or repay a automobile you continue to personal cash on that you simply now not need. One other private instance, I used to be capable of get out of the lease on a Jeep Renegade that I now not wished as a result of the Jeep dealership was determined for something apart from high-end Grand Cherokees and Wranglers. It is a automobile I attempted to get out of six months in the past and would’ve needed to provide you with hundreds and hundreds of {dollars} out-of-pocket on the time. Curiously, once I checked the vendor’s web site a number of days later that Renegade was listed at $1000 greater than it value brand-new at a 12 months previous and 11,500 miles.

The chip scarcity and pandemic have actually resulted in modifications in lots of industries and many individuals’s lives. The upside is extra worth in used autos you would possibly now not need, and plenty of firms have realized that it’s okay to permit individuals to make money working from home, which is a superb factor for many individuals.