Nashville-area showrooms empty with short supplies – Nashville-Davidson, Tennessee

Nashville-Davidson, Tennessee 2021-11-30 19:35:04 –

Hendersonville, Tennessee (WTVF) —The value of used cars is highly valued, and supply chain issues affect local dealers, making it difficult to find a new car.

An empty showroom doesn’t want to know exactly if a shopper will buy a new car. At Hallmark Hyundai, they don’t last that long.

They are accustomed to some customers who spend weeks or even months before buying. Now it only takes a few days. Davey Downs is one of the sales managers focused on explaining what’s happening with new deliveries, not sales.

“I don’t say it will be exactly 30 days. It can take 30 days. It could be 25. It could be 40,” Downs said.

The big picture problem is getting the small microchips needed to build an ever-advancing car. Every new car comes with thousands of these chips to function properly. Most of these chips come from abroad and we are having a hard time getting the supply to make these chips in the first place.

When demand for new cars was exhausted during the pandemic, factories around the world were closed. As the economy recovered, the factories that made these chips couldn’t keep up.

Joy Dodson is Head of Marketing and Operations for Chief Auto Group. She called it a debilitating blow to the automotive industry.

“There are dealers who usually sell 75 to 100 new cars, and now there are five, which is a big difference,” says Dodson.

She said customers are now willing to call or leave deposits for cars they have never met in person. Consumer experts predict that dealers and shoppers may see a shortage of new cars until 2022 before the market recovers. While this does not lead to higher lot prices for new cars, Dodson said, as of this spring, used car prices have risen by 30% in the United States.

The trade-off is that trade-in is more valuable than ever.

“Your car is more valuable because we can tell you a little more than this time last year or this time five years ago,” Downs said.

For the first time in her career, Dodson said she was immediately grateful to see a lot of cars running away. She said it is driving competition, as we have rarely seen before.

“All dealers aren’t in the way for customers to win their business. We want to make sure we sell everything that comes to us,” Dodson said.

Due to a shortage of parts, some experts predict that automakers will build 7.7 million cars worldwide.

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