Automotive Industry Shocking Developments – Pricing & Availability

  • July 15, 2022
  • 3 min read

The automotive industry, a dynamic and ever-changing landscape, is currently experiencing significant shifts, impacting both new and used cars. In this blog post, we’ll explore the latest developments, from wild price swings to the changing dynamics in the electric vehicle (EV) market.

New Cars: The Dwindling Inventory Dilemma

New cars are becoming a rare sight on dealership lots, with inventory shortages reaching unprecedented levels. The much-discussed chip shortage, combined with other factors, has led to a drastic reduction in available vehicles. Major dealerships, once boasting expansive lots, now find themselves down to single-digit cars.

In a recent interview with a general manager from a renowned Chevy dealership, it was revealed that their inventory had plummeted from 80 to merely five cars. This trend is not isolated, as dealerships nationwide grapple with diminishing stocks. Even large-scale dealerships, such as one in Fort Worth, Texas, have transitioned from housing 250-300 cars to having none, relying on immediate deliveries for each new arrival.

Used Cars: A Market in Flux

Contrary to the scarcity in new cars, the used car market has experienced a different trajectory. In recent months, as prospective buyers faced challenges in acquiring new vehicles, the demand for used cars surged. Some used cars even surpassed their original sale price, with dealers adjusting prices upward. However, a significant shift is now occurring.

The market is witnessing an influx of repossessed vehicles, coupled with diminishing demand for non-fuel-efficient cars due to rising gas prices. Larger vehicles, such as SUVs and trucks, are experiencing a decrease in value. As consumers grapple with increased living costs, there is a noticeable decline in spending on more expensive or extra vehicles.

Electric Vehicles: The Rise of VinFast

Amidst these industry dynamics, the electric vehicle market is quietly evolving. VinFast, a Vietnamese startup, has entered the scene with electric vehicle crossovers. With plans to open showrooms in California and rapidly expand, VinFast aims to have nearly 30 dealerships by the end of the year.

The emergence of VinFast raises questions about the future of electric vehicles. Is this a pivotal moment, marking the widespread adoption of EVs, or is it a passing fad? Consumer interest in electric vehicles is a crucial factor, and feedback on VinFast’s offerings could shape the trajectory of the EV market.

Ordering New Cars: A Return to Waiting Times

In a peculiar turn reminiscent of historical anecdotes about car purchases in the USSR, ordering a new car in the U.S. is no longer an instant process. Delays of five to six months have become the norm, challenging the conventional expectation of immediate gratification. The chip shortage, once cited as a primary reason for inventory issues, is transforming into a strategic approach to minimize dealership inventory.

The Shifting Paradigm: Your Thoughts?

As the automotive industry navigates these transformative times, it leaves us with questions. How do you perceive the current state of the automotive market? Are you experiencing challenges finding the right vehicle? What are your thoughts on the electric vehicle wave, especially with new players like VinFast entering the scene?

Feel free to share your experiences, insights, and opinions in the comments section. The automotive industry is at a crossroads, and your perspectives contribute to a more comprehensive understanding of these evolving dynamics. Stay tuned for our next video episode as we continue to unravel the layers of change within the automotive sector.

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