BUFFALO, N.Y. — As the economy continues to reopen, car shoppers are seeing an unusual problem -- car dealerships are running low on "new cars" and in many instances... very low!
This is largely because of a perfect storm. A shortage of semiconductor chips that go in your car, the foam for the seats of the vehicle, metal shortages and more.
Now with demand for vehicles on the rise vehicle prices are inflated and your used car is probably worth more than you ever thought.
2 On Your Side's Scott Levin sat down with Paul Stasiak from the Niagara Frontier Automobile Dealer Association about the shortage, and what those in the market can do.
Scott Levin: A lot of local dealers and for that matter dealers all over the country do not have a whole lot of new vehicles, because of what's happening in the pandemic, correct.
Paul Stasiak: Scott, your 100 percent correct. This microchip shortage that's been created by the pandemic has put a very unique twist on our industry. It's really crimped the dealer's availability and the industry's availability, just primarily because they have no raw material to build vehicles.
SL: Let's talk about the consumer for a moment here, Paul. I mean, if you're a seller and you're selling a used car, it's a great time because dealers don't have the new cars. So they have to sell more used cars. But if you're a buyer, or you have a lease that you're turning in, it is a difficult time now because prices have skyrocketed, correct?
PS: That's correct, Scott. I mean, it's like anything else the supply and demand cycle doesn't affect us any different than it does the housing market or lumber markets.
SL: What should the average consumer do right now?
PS: You have to have flexibility. I'm telling a consumer, my family, my neighbors, my friends, Hey, sit tight, if you can, if you can extend your lease for a couple of months. Please do that. I think that's a smart move.
SL: Do you see this changing anytime soon? Paul?
PS: Scott I'm the optimist, as you well know. I would have said June, July, but everything we're hearing from the national level is it's going to push to August or September. If I were a betting man, I'd say July would be optimistic. I'd be realistic to say maybe August, early September.