Friend runs a dealership. Used to have 150 cars on lot. Now 20.

[BSdetect]

Things are changing rapidly.

[Hoyt]

1. Yep, all the dealerships near me are barren.

[TreasonousBastard]

2. Chip shortage. That's almost entirely on car cos. that insist...

on older designs.

But just wait until the car biz moves to electric. And it will soon enough.

[MineralMan]

3. Yes. When I saw that coming, I bought a new 2021 Chevy Trax,

since I needed a car. Even at that time, I had to grab one, sight unseen, when I found one "in transit" to a local dealer. I called and made a deposit to hold that particular car until it arrived at the dealership, and then showed up on the day it was unloaded from the transport truck to finalize the deal.

So, I got my car, but that dealership no longer has any new Chevy Trax models in inventory. The only reason they held mine for me was that it was a cash purchase. They could have sold it twenty times within a week of arrival. I just lucked out by seeing it as "in transit" in the dealership's inventory list and by making the call immediately.

[Initech]

12. I bought a 2020 Subaru Legacy last year. Glad I did not wait.

I was in the market before the shit hit the fan (started looking late 2019) and I was down to Subaru, Honda, Hyundai, and Kia. I went with Subaru because the car was less expensive than the Honda and had better incentives. I pulled the trigger last September when car dealers couldn't give new cars away and scored a hell of a deal on mine and some of the lowest car payments I've ever had, while getting one of their top of the line models (I got the Limited trim which is one step below the top model XT trim).

But now it's totally insane what is happening to the new car market. And the sad thing is most business articles I've seen have said that the shortages will last well into next year. COVID has totally destroyed and ransacked supply chains and it's going to take a while to rebuild from that. It sucks. I'm glad I got my car when I did but others may not be so lucky.

[MineralMan]

15. Good job. After we moved from one house to another, I no longer

needed my 96 Ford Ranger, and we needed something that would fit neatly in our compact 2-car garage. So, I sold the Ranger to some guy for about what I had in it and started looking for a compact SUV with AWD. I looked at a lot of not too old used ones, but the prices seemed way too high for a vehicle without a factory warranty.

So my wife and I discussed it and decided to go with a cash buy of the least expensive brand new subcompact SUV with AWD. That describe the Chevy Trax perfectly. It's not very popular with buyers, but has a warranty, gets decent mileage, and performs OK on the road. Not a glamour car by any means. I drove a couple of recent used ones and could live with it.

So, I started watching local Chevy dealer inventories closely and regularly. As soon as I saw one coming in to a dealer as "in transit," I made a call and put down the deposit they wanted to hold the car for me for 36 hours after it was delivered to the dealership.

We still got the end of model year rebates from Chevy, but there was no bargaining on it. So, it came in, I went to the dealer, and wrote a check for the car, after just driving it around the lot. It hadn't been prepped yet, so I had to come back the next day to pick it up after the dealer prep was done. Almost all of this was done online, which was the first time I had bought a car that way.

The next day, we went to the dealership, signed off on the car and drove it away. So far, it's been just fine, although we have only put about 500 miles on it in three months. It will be our winter car. The KIA Soul will live in the garage all winter, and we'll rely on the AWD in the Trax to help us get around when there's snow and ice.

[Initech]

23. Yeah I was in the market before COVID.

My Nissan was getting past the 100K mile mark and I knew I needed to get a new car before the expensive maintenance bills started piling up. I went to the LA Auto Show in 2019 and started aggressively looking and pairing down. I looked at pretty much every midsize sedan on the market. Honda, Subaru, Ford, Kia, Toyota, Hyundai, Chevrolet, Mazda, Volkswagen, even low end Mercedes and Audi models.

The Mercedes and Audi proved to be extremely tight fits so they were out. The Mazda and Fords were pretty decent cars but doing further research I saw that they were older models and that the Fusion was at the end of the line as was the Chevy Malibu. So those were out. I really liked the Kia K5 and almost went with that but the interior proved to be cramped, at least for me.

I wanted a Camry but trying to find one with all the options I wanted proved not only to be a challenge but a maddening process. Then I saw Toyota donated their money to MAGA causes so I was out on that.

Then I finally test drove the Legacy and that proved to be it. I wanted a Honda Accord Hybrid but I didn't find any specials on any models that had any decent trim sets that I wanted, so I went with the Legacy. Plus Honda's new car incentives were terrible (one free oil change? Really?) where Subaru I got 2 years of maintenance and all kinds of other extras included plus 0% financing.

I liked the car and the dealer so I got it. I had a few headaches with the car initially (mainly because Subaru Starlink is a colossal PITA and I had issues with a broken windshield and an extremely shitty repair job) but those have since been ironed out and it's a pretty smooth ride so far. Of course I had no idea that the shit was going to hit the fan between when I started looking and actually bought my car.

[MenloParque]

4. Last week I had someone post a note asking if I wanted to sell

My 2007 Toyota Sequoia. Found that really strange that someone wanting to buy some old gas guzzling super big SUV. The new car dealerships seem to have lots of inventory nowadays. Maybe the used market is a different story.

[marie999]

13. There is a CarMax in Jacksonville NC. It looks like it has more used cars on its lot

then all of the new cars in dealerships.

[PortTack]

5. Anyone but me think this is planned permanent inflation? Like the gas shortage in the 70s

Once the price goes way up, it’s only going to come down a bit and never return to previous prices.

They could make chips here..easily

[Bluethroughu]

6. Could be, I suspect.

Why produce more when you profit more without the volume.

Uuuhhh.

[lagomorph777]

7. Intel and TSMC are investing about $40 billion to make chips here.

It will take a while, but it's a very big deal. Making chips is not even close to easy anymore. The exotic technologies needed to fabricate them are simply mind-boggling and the cost is eye-popping. Only a few big companies actually do all the manufacturing for the hundreds of companies who design and sell chips. It's an unavoidable consequence of the massive scale needed to make it affordable.

Both are building in the Phoenix, AZ area. Which makes it even more important to turn AZ more blue, as a matter of national security.

[Klaralven]

16. These will probably be foundries to make 300 mm diameter wafers using 7 nm or less processes

Many of the critical chips needed for autos are made in old process nodes of 35 nm or larger and on 200 mm wafers.

There is not much new investment in those process nodes.

It's not clear how hard it is to qualify chips made on 7 nm processes for automotive use. They have to operate over a very wide range of temperature for a 20 year life. With the fine features of the latest nodes, that may be impossible.

[lagomorph777]

17. I think these will free-up capacity in older fabs as many applications move to

I agree; automotive is (by necessity) quite conservative in chip use.

I've heard that some old fabs are being taken out of mothballs; that may help some too.

[Sgent]

24. I think one problem

is that the larger chip manufacturers have told the automakers to pound sand, they aren't building new fabs on 35+ nm. I know 22nm is certified for aviation and space, so I assume they can get auto certification as well, but auo/parts makers will have to redesign all of their existing chips and buy new masks.

[marie999]

14. Our Sam's Club just dropped its price from $3.21 to $3.02.

With their club card, I am paying $2.87.

[jalan48]

21. I've had the same thought. Inflation without the need to call it inflation.

[madville]

8. Yeah, the used car market is nuts

My 2014 Camry (I bought new for $20k) was worth $9000 last year, valued at $11000 now.

My 2015 F150 I bought for $29k last year is now valued at $33k.

My son bought a new 2020 Tacoma for $36k before Covid, recently traded it in with 30k miles for $38k lol.

A combination of supply/demand and inflation. Can’t even find a drivable used car under $5k in my area now.

[Sogo]

9. A friend of mine just bought a new RAV4.

She said the used ones on the lot were only $3000 less than the new ones. Not sure I understand why that would be the case.

She was happy to get a new one exactly the color and options she wanted.

[lagomorph777]

18. I know somebody who just sold one for more than they bought it for a couple of years ago.

Apparently quite a popular model.

[FakeNoose]

20. Those cars are keeping their resale value up

... probably because the previous years' models got very good ratings with regular maintenance.

I was lucky to snag a 5-year old Chevrolet Sonic at a great price. Late model Sonics have been in high demand since the 2020 model got a #1 last year. For some reason Chevrolet just discontinued them - go figure!

[mitch96]

10. When covid hit almost all the used car and new car dealers had no stock. Now I see lots full

This is down here in west central Florida. I wonder how many are flood cars that have been "rehabilitated"
It was like a switch got flipped. One month nothing, next month a full lot. Mostly pickups.
As usual in Florida.. buyer beware
m

[taxi]

11. CARS, take 2 (cash for clunkers)

Will There Be Another Cash for Clunkers Program?
There has been some discussion under the Biden administration for a program similar to Cash for Clunkers that would be part of Biden's overall infrastructure plan. Senator Chuck Schumer believes the plan could include billions of dollars allocated to a program to encourage Americans to switch from gasoline-powered vehicles to electric vehicles. The program would most likely swap out engines for batteries.

https://www.investopedia.com/terms/c/cash-for-clunkers.asp

[MichMan]

22. Are car lots overflowing with new electric vehicles ?

Trying to understand the logic of cash for clunkers 2 when there is a shortage of cars to buy.

[taxi]

25. Let's start with what happened in the original CARS

The older models were taken off the market, engines disabled, and bodies destroyed. The effect was that replacement parts for the eligible vehicles became unavailable, reducing the lifespan of the cars that were not traded in for newer models. Owners could no longer make major repairs to the cars for less money than it would cost to buy a newer, more fuel efficient vehicle. Cash for clunkers 2 would have the same result over a shortened time frame - owners not able to afford the repairs would have to choose between a newer car or going without. Is this what you're asking?

[MichMan]

29. Let's start with the premise of this thread

There is a massive shortage of new vehicles to buy. Car dealers in many instances are getting thousands of dollars over sticker price and people are still lined up wanting to pay it.

What sense does it make to institute a program to encourage people with monetary incentives to trade in used cars for electric cars when there are few cars available to buy?

It's just like a big retailer giving a mass mailing coupon for 1/2 off off on a TV on black Thursday when they only have 1 or 2 available to sell therefore making everyone who missed out angry.

[taxi]

32. Maybe this

In an effort to reduce auto emissions the world has been taking baby steps. There is little desire for people to give up their personally owned vehicles, and even less to move from internal combustion engines. The powers that be cannot simply pick a date in the near future for the transition to EV from fossil fuel. There are conflicting interests at the level where decisions are made. Fewer cars per household is inevitable, and in the recent past the use of ride sharing has allowed some to give up their cars. Improvements to infrastructure will allow for more and better public transportation, package delivery systems have reduced the number of shopping trips, and food delivery options are on the increase. IMO the people that are willing to kill Big Bird for getting a vaccine would probably be very upset if asked to take a giant step forward.

[CentralMass]

19. The chip shortage is a major factor.

[MissB]

26. I'm glad I managed to get my car this year

It was a random decision- Dh and I were out working in the yard one Saturday afternoon and I suggested we go to the dealership and test drive the new all electric Volvo.

We got there about an hour before closing. After the test drive, we got a look at the incoming cars and chose one. It arrived about two weeks later.

Bonus is that I sold my used 2015 car for 90% of what I paid for it (which I bought used in 2018 for half of the original purchase price…) We also sold my son’s car a few months back and they paid way more than I expected.

I’m wondering how folks are handling the loss of cars in our area. 30-50 vehicles a day are being stolen in our area. With reduced cars available that must be helluva double whammy to get it stolen and then try to find anything available, used or new.

[helpisontheway]

27. I was out of town and they only had two new Subarus on the lot

Also, we purchased a new Subaru Forester Sport at the end of 2018 (it is a 2019). Anyway, they are offering me more than I paid for it in 2018.

[NoMoreRepugs]

28. Checked residual value on my lease that's up in a few months, current value of car is $10k above it.

It's a bit like a gift with purchase.

[MichMan]

30. What are you going to replace it with ?

[NoMoreRepugs]

34. Great question - no idea.

[mitch96]

31. My Prius was coming up to the end of lease. Toyota said it would cost around $2000 to TURN IT IN.

Minor damage and in their words "not a popular color" it was red. I went to carmax and carvana. They both offered me over $2000 ABOVE the lease payout. So instead of paying toyota $2000 to walkaway from the lease, Carvana paid ME $2000 for the car. I used that money towards a downpayment for the next car.. Oh and don't believe them when they say you have to turn it into the "Brand" dealer.
Carvana and Carmax are auto dealers and the MFG will honor them purchasing your car at the end of the lease... Can't beat it. I don't know how long this will last.
M

[Tree Lady]

33. My daughters dealership she is CFO

Of Honda in Santa Rosa is doing fine has more cars than anyone else in area. She said the salesman have done great purchasing used cars and they are doing ok on new cars.

Both her and the other manager are into Tony Robbins and all the positive believing in growth, seems to be working for them.

[roamer65]

35. Gonna make my 2017 Cruze last until at least 2024.

By then there should be a shitload of 2020 and 2021 vehicles sold as used.