HINGHAM –While Presidents Day is usually a time to score a deal on a new car, this year is a little different.
New vehicles are hard to come by and are some are staggeringly expensive thanks to COVID-related supply chain issues.Automakers had to slow down production to help slow the spread of the virus, and now a computer chip shortage because of high demand for consumer products is limiting manufacturers.
When a swifter-than-expected economic rebound boosted demand for vehicles, auto plants tried to restore full production, but chipmakers couldn’t respond quickly enough.
The average new vehicle, according to car-buying website edmunds.com, is edging toward $46,000.
"Sales volumes are in a good place. It's not perfect yet and we need some patience from clients," said Tim Mullin,a sales manager at Best Chrysler Dodge Jeep RAM in Plymouth. "One of the bigger changes is sometimes instead of driving a new car off the lot, people might buy a vehicle and wait as it comes down the pipeline."
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He said inventory had been tough to come by, but is getting better. Mullin said customers have gotten used to the idea that cars are in shorter supply than years past because of high demand.
While there may be low inventory at the dealerships, that opens the door for car reservations,David Migrants, sales manager at Best Chevrolet in Hingham,said. The sales team at Best Chevrolet keeps track of the incoming cars to let customers know what's coming even if they may not be able to test drive it that day. When it does arrive, they have the chance to buy it.
"I would say probably 80% of the sales this weekend were definitely in-store with20% of customerslooking to reserve an incoming vehicle,"Migrants said. "The demand for vehicles that are currently on the lot is pretty high, so we're really happy that we're able to inform costumers what we have incoming, offer them for sale, make sure they can lock them down and they don't have to miss out on it."
Among those at the dealerships on Presidents Day were Joe and Julie Gozzo, of Braintree, who were looking for a truck at theChevrolet dealership in Hingham. While the couple just came to look, they said they'd pull the trigger if Joe Gozzo found a truck he loved.
The couple havenever been car shopping onPresidents Day weekend before, but this year it was convenient.
"We both happen to have the day off,"Julie said.
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In addition to skyrocketing prices for new cars, used cars have also gotten more expensive.
Sales of new vehicles sank when automakers slowed down at the beginning of the pandemic, andfewer people traded in used cars and trucks.
At the same time, the demand for laptops and monitors from people stuck at home led semiconductor makers to shift production from cars, which depend on such chips, to consumer electronics.
Rental car companies and other fleet buyers, unable to acquire new vehicles, started holding on toolder ones and compounding the shortage of used vehicles.
When the government reported that consumer inflation rocketed 6.8% between November2020 and 2021– the sharpest jump in nearly 40 years – theused vehicle market was severely affected. And while the rate of increase is slowing, most experts say the inflated vehicle prices aren't likely to ease for the foreseeable future.
Mike Sewall, the general manager of Ocean Honda in Weymouth, said things are improving. He said inventory hasn’t been as big of an issue as some people think, which could deter them from visiting the dealership even if they’re in the market for a new car.
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“It’s more of an issue of people coming out. There is a perception issue that there’s nothing available,” he said. “We’ve seen a steady increase of vehicles coming in, so momentum is picking up.”
Sewall said he was hopeful that the mild weather Monday would draw out more shoppers who are interested in taking advantage of incentive programs and deals from vehicle manufacturers.
“It’s not as busy as it used to be, but it’s definitely getting better,” he said.
Reporters Joe Difazio, Jessica Trufant and Alyssa Fell, as well as material from The Associated Press,was used in this report.
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