How Utah Dealer Overcomes Chip Shortage Slowing New Car Availability


Estimated reading time: 4-5 minutes

It wasn’t that long ago that cars were relatively simple machines. As late as the early 2000s, most cars only had a handful of electronic control units, or ECUs as they are called. These tiny control units use semiconductor microchips to moderate various functions of the engine and other electronic components of the vehicle. Today vehicles can have dozens of ECUs and even more semiconductor chips.

Semiconductor chips are small but complex and time consuming to manufacture. According to Statistical, most semiconductor chips are made in Asia, and when the world shut down at the start of the COVID-19 pandemic, semiconductor factories lay dormant for months. While manufacturing was on hiatus, demand increased. Cars, phones, computers – anything that uses semiconductor chips – continued to be in high demand until 2020 and now until 2021.

As demand continued to outstrip supply, the chip shortage bottleneck reduced the number of new cars coming off the assembly lines and entering dealer lots, causing headaches for dealers and customers.

How Utah Dealer Overcomes Chip Shortage Slowing New Car Availability
Photo: Volkswagen South Towne

The impact of the chip shortage on the new car market

As with any product where supply is low and demand is high, low inventory and high prices have become the name of the car buying game. If you walk past most of the concessions, you will notice that they are almost empty. And the cars they have are often billed with a market adjustment of several thousand dollars above the Manufacturer’s Suggested Retail Price (MSRP).

These less than ideal purchasing conditions for customers make it difficult to find the vehicle they are looking for and pay for what you have budgeted for, leaving customers with a limited choice of options. .

Dealers like Volkswagen SouthTowne have anticipated these bottlenecks and are here to help anyone looking for a new car.

How Volkswagen SouthTowne is beating the trends

If you’re tired of walking around empty dealerships or being told you have to pay thousands more than the MSRP to get a new car, Volkswagen South Towne is about to become your best friend.

“We have so many customers who come to us after being told by another dealership that they have to pay thousands more than the MSRP just to get a new car,” said Josh Osborne, general manager of Volkswagen SouthTowne. “A lot of these customers even put a deposit on this car, but they were told at the last minute that the price had changed. At Volkswagen SouthTowne we always have great deals and we give our customers special access to our list of inbound vehicles so they can choose exactly the car they want. We know our customers will be remembered for the fair and positive way we treat them.

How Utah Dealer Overcomes Chip Shortage Slowing New Car Availability
Photo: Volkswagen South Towne

Part of the positive treatment at Volkswagen SouthTowne comes from their willingness to allow customers access to their inbound pipeline of vehicles during their VIP Access sale.

“The car buying market is very different now compared to years past, so we are eager to help our customers navigate it. The truth is, we get trucks of new cars every week.” , Osborne said. “The key is to have your name on the car you want at our VIP Access Sale so it doesn’t get sold until you get here.”

Volkswagen SouthTowne also offers 0% APR on remaining 2021 models, no payments until next year and low leases during the Sign Then Drive promotion on 2022! Plus, as always, Volkswagen SouthTowne is home to MSRP Vehicle Trade-in where you can get the original base MSRP for your trade-in, only deducting mileage, manufacturer incentives, and any damage.

In addition, Volkswagen SouthTowne has a pre-order reservation platform for its popular electric vehicle, the ID.4. From their website, you can create and order your new custom electric vehicle from a deposit of just $ 100.

“We allow customers to pre-order certain vehicles like the ID.4 EV. Our customers deserve to have the car of their dreams and our VIP access sale allows them to do that, ”said Osborne.

During this difficult time in the automotive market, Volkswagen SouthTowne strives to provide solutions for its customers – and with their VIP access sale, fair prices, incredible business values ​​and competitive rental deals, Volkswagen SouthTowne is a rarity among dealers.

Learn more by visiting Volkswagen South Towne today.

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