Currently in the market for a new or used car? If so, be prepared for some sticker shock, at least for the foreseeable future.
According to the analysts at automotive resource company Edmunds, new car inventories have been strained for months due primarily to a combination of global semiconductor chip shortages and supply chain disruptions connected to the COVID-19 pandemic.
After digging into the potential impacts of those factors, the company recently reported that new vehicle inventory at dealerships nationwide was down by 48% this spring compared to a year ago, with inventories continuing to fall in the summer. And while the company does predict that new car inventories will begin to steadily rebuild beginning in September, the anticipation is that inventories will remain well below their pre-pandemic levels through 2022.
“New vehicles — particularly new trucks and SUVs — are basically the 2021 equivalent of toilet paper and