Why is there a Shortage of New Vehicles?
There has been a shortage of new vehicles across the automotive market during the past year. According to Automotive News, Subaru has the lowest inventory of new cars out of all American automakers, with a six-day supply. The main reasons for the low levels of inventory are the global pandemic and a microchip shortage.
Within the past year, Subaru has had multiple temporary suspensions in production, in response to the spread of Covid-19. Factories are back to operating regularly, but are still struggling to fully function due to a shortage in microchips. For the last few months, there has been a global shortage of semiconductors. This small electronic component is crucial in modern tech design, helping to pack advanced circuitry into a small chip. A new car can require up to 1,400 computer chips to manage the electric windows, infotainment systems, air conditioning, and any other electronic system that is found in a car. Without this piece readily available, new car inventory is down by 50% in the U.S. New Subarus are being manufactured in Japan and Indiana factories as quickly as possible, but by the time they arrive at retailers, many are already sold.
Is now a Good Time to Buy a Car?
Currently in the automotive market, supply is low and demand is up for both new cars and used cars. In addition to factory suspensions and microchip shortages, factors like low interest rates, consumers receiving stimulus and tax refund payments, increased spending after a stagnant 2020, and rental car companies buying up new cars without returning used cars back into the market have all contributed to low inventory. With this low supply and high demand, new and used car prices have gone up.
Now may be a tough time to find the right model at the right price in inventory at your Subaru dealer, but there are options. Both used and new models are currently available at Rafferty Subaru. If you are looking for a model that is currently unavailable, Gengras Subaru Torrington can order new models directly from Subaru’s zero-landfill factory, or by working with a network of Subaru retailers. We can help you find your perfect Subaru!
