Supply Chains Freak Out as COVID-19 Pandemic Shuts Down Factories

The COVID-19 pandemic had a huge impact on the supply chain for chip manufacturing. The world's factories shut down, making it difficult to acquire supplies needed for creating chips. Increased demand from consumers caused shifts that rippled up the supply chain. Orders piled up and grew as manufacturers struggled to create enough chips to meet new levels of demand. It was an all-around mess until things finally started getting back into order when the pandemic ended months later.

Car companies, like Ford, have to predict the amount of chips they will need to produce their cars and order them in advance from one of the chip manufacturers. As of now, it can take at least half of a year for a chip order to come in. The current demand for chips is so great that manufacturers can't make enough chips to meet it at this time, meaning consumers will soon be seeing higher prices for less goods.

Used car companies have faced a tough time as well, with used vehicles being in short supply. People are keeping their cars longer than usual as they can't afford to buy new ones. The lack of available used cars due to the high demand for chips has caused prices to go up everywhere. This also means that many more people will be looking at buying pre-owned rather than trying to find a brand spanking new vehicle right now.

The high demand for used cars also means that people are repairing their current vehicles instead of buying new ones. The parts needed to fix the old car can now be found easily, unlike before when they couldn't find what they needed at all or would have had to wait a long time just to get it shipped in from overseas. Instead of throwing away older models and putting money into something that may not work anymore, many consumers are keeping them longer than usual until supply catches up with demand again. It's become apparent that there will always be buyers who want these types of cars so companies won't stop making them anytime soon, even though sales might go down as more people turn towards newer releases out on the market.

Now, car dealers are experiencing a shortage of inventory combined with robust demand. The latter is due to an improving economy, low interest rates, high savings and government stimulus payments.

However, car dealers are having to offer their customers more incentives and low-interest financing rates in order for them to buy the vehicles.

As a result of this shift, used car prices have started going up as well. Used cars that had been previously considered old or undesirable due to age now seem like great deals because they're either comparably priced with newer models on the market or even cheaper than those same older model cars when you factor in how much money people will save by driving something lower maintenance compared to new ones which typically require warranties, regular oil changes and expensive service appointments every few years.

Used car sales have seen a huge upswing recently with dealerships reporting that in the past few months they've sold more used cars than new ones. Buyers are also getting better deals these days too, as everyone is looking to snag themselves one of those older model vehicles while supplies last and prices stay low.

With so many people needing to get around town for their jobs now that public transit isn't an option anymore due to COVID-19, it's understandable how demand has gone through the roof when it comes to car purchases right now. People need them just like trucks and vans did previously because there aren't any buses or trains going out where you live if your job requires travel outside of city limits either which means having your own car is the only way to get yourself there on time. Buyers are also getting better deals these days too, as everyone is looking to snag themselves one of those older model vehicles while supplies last and prices stay low.

If you find yourself in the same shoes as many other car shoppers around the Tacoma, WA, area and you need to upgrade from your current vehicle during the auto industry's supply chain issues, turn to South Tacoma Auto. Our pre-owned auto dealership specializes in affordable used cars, trucks and SUVs for sale, and we haven't stopped providing driver-friendly pricing during the pandemic!

Now is your chance to trade up to a high-quality used vehicle by shopping our extensive, ever-changing inventory online or onsite at our Tacoma, WA, used car dealership. We even offer Express Purchase and Home Delivery, so don't wait to secure your next pre-owned ride here at South Tacoma Auto!