The situation will keep car prices sky-high.
COVID-19 cases are spiking again in certain chip-producing Asian countries.
The average new car transaction price in the US is now nearly $42,750.
This is disappointing news as there were signs that relief was on the way a few months ago. The ongoing global chip shortage has cost automakers billions of dollars so far and it looks as though the issue is not done causing havoc in the industry.
The spiking numbers of new cases from the Delta variant in many Asian countries is once more affecting chip supplies and production. This will clearly affect auto production globally, keeping new car inventories low.
Demand for new and used vehicles has been generally strong for most of 2021, pushing pricing for both types of vehicles to new highs. In fact, according to CBS News, average transaction prices are continuously increasing. Back in July, the new vehicle sale price reached $42,736, or an 8% increase over the same period the previous year. As well, it’s another new record amount.
Demand has slowed in the US recently as a result of these high prices, at least in part. Low inventories and long wait times for deliveries are also to blame. Currently, some automakers are beginning to see shortages of wiring harnesses, plastics, and glass, as well. We’re certainly not out of the woods yet.