Modern cars use microchips to power their electronic components. Without these, everything from the dashboard controls to the power windows would stop working. Unfortunately, auto manufacturers don’t have access to as many of these important components as they used to, so the supply of vehicles is limited at many dealerships. Here's a closer look at buying a car in these unprecedented times.

What Had Caused the Chip Shortage?

The COVID-19 pandemic has caused several changes that led to the current shortage. At the onset, many auto plants shut down due to safety concerns, government regulations, and a perceived lack of demand from consumers. They stopped ordering semiconductors, which are the tiny circuits used in microchips. 

However, consumer demand for vehicles remained relatively high. In addition, consumers bought even more electronics than usual, including laptops to facilitate telework and mobile devices to help kids with remote schooling. Since all of these products use semiconductors, manufacturers could not keep up with demand. 

What Should Buyers Know?

For car buyers, this means dealing with less inventory and fewer discounts, especially for popular vehicles. Some people are putting off new purchases, hoping to wait out the chip shortage. 

However, many experts expect it to go on at least into 2023, and dealerships around the world are all eagerly awaiting the opportunity to fill their lots, so demand is likely to remain high for years. Additionally, the chip shortage has caused many people to pursue used vehicles instead of new ones, so demand has driven up prices in that area as well. 

How Should You Approach Buying a Car This Year?

It's still possible to get decent value when purchasing a vehicle during the chip shortage. It's just important to be realistic about pricing and availability. If you’re not searching for a specific car, visit your dealership to see what’s available in your price range, and be open-minded about the options. 

It may also help to research models that aren't particularly in demand at the moment. Some vehicles, such as the new Ford Bronco, are incredibly popular, so buyers may need to place special orders and deal with significant wait times to get these. 

Those looking for a deal on cars should simply lower the price used in their search instead of trying to bargain, as dealerships don’t have room to lower prices due to a lack of inventory. You might also consider used models to get a quality vehicle that’s just a few years old.

If you’re shopping for new or used cars during the chip shortage, Autonomous in Kennesaw, GA, can help. The auto dealership offers an array of both new and used models, and the friendly team can go through all the options with you to help you find the fit that best suits your needs and budget. Visit the website to browse their inventory or call (470) 427-5300 to speak with a team member.