Car Prices are Up --- Component Supplies are Down

Car prices are up and the Covid-related microchip shortage takes a big part of the blame. The chip shortage continues to hurt car manufacturers and local dealers. Jerry Reynolds the Car Pro says the shortage will end. "There are more chip manufacturers coming onboard. It's just a lengthy process. I'm gonna guess we will continue to see this through the first quarter of 2022." Reynolds says there are also shortages in other important car components like rubber and aluminum. "These shortages are not completely going to go away. But---their damage is not to the effect that the microchip shortage has done." He says it's making life difficult for our local car dealers due to the lack of inventory. "People who want to go to the lot and touch and feel and drive are going to be in trouble."

Coronavirus VS Cars

Reynolds says add aluminum and rubber shortages to the mix and drive by any new car lot and you'll see a lot of concrete. His words of wisdom for the thrifty car buyer: "The biggest problem we're gonna have this year is for a lot of people who love to buy their new car during the last week of December. If you do that this year --- there won't be any!"

Hear Jerry Reynolds the Car Pro every Saturday on KTRH.

Photo: GettyImages

Visiting car dealership

Car dealerships have low inventory due to micro chip shortage.Photo: Getty Images

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