The pandemic slowed down the U.S. economy considerably. Over the last year, shutdowns and quarantines strained car manufacturers and their supply chains. However, as the economy began to improve, the automotive industry began to see a light at the end of the tunnel. Americans wanted to buy new cars again. While this was initially a good thing, the automotive industry was suddenly faced with a new crisis. There was an automotive chip shortage.
This automotive chip shortage caused many auto manufacturers to halt production. Semiconductor suppliers just couldn’t keep up with the new demand. In addition to the increase in new car demand, a series of natural and unpredictable disasters destroyed many semiconductor supplies and factories. From drought in Taiwan to a fire at Japan’s key chip supplier, these disasters resulted in an automotive chip shortage that had a ripple effect throughout the economy.
This automotive chip shortage resulted in higher new car prices as well as increased demand for used cars. As this demand grows, used car values are soaring, making it difficult for many consumers to buy vehicles. In the second quarter of 2021, used car prices soared 21% higher than they were before. This made it the highest average price ever recorded for pre-owned vehicles.
How Will the Chip Shortage Affect You?
The increased price of new and used cars will not fall to pre-pandemic levels until manufacturers figure out the chip shortage and fix the supply chain issues.
If you have a used car and are in the market for something new, you might want to hold on a little longer. Manufacturers expect this automotive chip shortage to affect prices well into 2022. That means you need to keep your car running for as long as possible.
How Can You Keep Your Car Running During the Chip Shortage?
You can keep your car running at its best by continuing to perform routine maintenance. This includes tire rotations, brake checks, filter changes, and oil changes. Talk to an experienced mechanic at regular intervals to make sure your car works well until the time is right for you to purchase a new one.
The trained car service technicians at Silver Star Motors have considerable experience maintaining and servicing all varieties of cars, including German cars like Mercedes and BMW. We pride ourselves on helping our customers keep their vehicles running smoothly and efficiently. We know that the pandemic has been difficult for everyone. Let us help you keep that car a little longer during this automotive chip shortage. Call us at (916) 318-9445 or fill out our contact form for more information.