Car dealerships are dealing with supply and demand issues
The main reason for half empty car lots is the semiconductor shortage has disrupted auto production worldwide.
TWIN FALLS, Idaho (KMVT/KSVT) —With vaccines, stimulus checks, and tax returns being rolled out some people in the Magic Valley are in the market for a new car, and this particular year car shopping is a race more than usual.
Hank Wills, the general manager and vice president of Wills Toyota in Twin Falls, told KMVT News the current car market is strong, and March was their best month ever in their 75-year history.
“However now and nationwide inventories are short and prices on new and used cars are moving up higher, Wills said.
There have been reports nationwide of customers paying sticker prices for new cars. Wills said the main reason for half empty car lots is the semiconductor shortage has disrupted auto production worldwide, along with COVID restricting plant production this past year, and a rare storm in texas a few months ago.”
“New car customers should be prepared to wait one or two months to get the new vehicle they have been wanting for versus driving away the same day they come on the lot,” he said.
Wills Toyota is currently pre-selling a lot of their vehicles, and they have about four times the amount of vehicle inventory coming in compared to what is currently on their lot.
“I checked this morning, and we have about 40 new Toyotas pre-sold right now,” wills said.
He also said there is good news for customers looking to trade in their used vehicles.
“Trade in is worth quite a bit more than it was even two months ago. With the shortage dealers at auctions are literally paying what retail book was a month ago,” said Wills. “The values of used cars are rising very rapidly.”
He is hoping for things to normalize around August, but he personally thinks it will take a little longer.
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