Looking to buy a new car? Automobiles are going for record prices as the COVID-19 pandemic has upended supply chains. Leading car salesperson Bobby Wilkinson from Ottawa breaks down the details.
The COVID-19 pandemic has had a huge impact on the global economy and has disrupted supply chains across the world. As a result, automobiles are selling for record prices. Now, leading Ottawa car salesperson Bob Wilkinson shares his industry insights.
“A lot of dealers are short on cars,” Bob Wilkinson explains. “In the past, some hot models have been in short supply, but dealers rarely struggled to find cars to fill up their lots. Meanwhile, demand remains high and may increase as the global economy heats up.”
So what does this have to do with COVID-19? The pandemic has upended many industries. Many businesses were forced to shut down, in some cases temporarily, in other cases permanently. Financial markets and real estate prices have soared, and now, supply chains are being disrupted. As far as automobiles go, computer chips and other vital components are in short supply.
Many automobile manufacturers, including Ford and Chrysler, have had to halt or slow production while they wait for essential components to be delivered. As a result, far fewer vehicles are rolling off the assembly line.
At the same time, demand is picking up and buyers are struggling to find cars. Traditionally, buyers had a lot of negotiating power because dealers needed to clear out their lots. Now, with car lots drying up and customers clamoring for vehicles, many dealers are hesitant to offer steep discounts.
“You have to consider it from the dealer’s perspective,” Bob Wilkinson of Ottawa says. “If you only have two or three cars for a popular model, you’ll hesitate to cut a deal. If a buyer won’t pay full price today, someone else probably will tomorrow or next week, so you may as well hold onto the car.”
This is true for both new and used cars. Supply is so limited, many people who would have preferred to buy a brand-new car are settling for used vehicles. Unfortunately, prices here too are often quite expensive.
Bob Wilkinson suggests that if you’re not in a rush to buy a car, you should go out in a few months to see if production picks up.
Bob Wilkinson Talks About the Auto Industry Rebound
While the COVID-19 pandemic has dramatically altered the automobile industry, it’s likely only a matter of time before production ramps up. Once automobile companies can get the needed components, they’ll likely expand production dramatically to meet demand.
“Auto companies are working hard to increase production, and given their resources, they’ll rebound,” Bob Wilkinson says. “If you’re tight on cash, you may be able to find some good deals later as supplies get replenished.”