It is no secret that the auto industry has faced numerous challenges in the last few years. Global
chip shortagesand supply chain logistics have caused headaches for consumers looking to purchase new vehicles.
Despite these challenges, there was an impressive increase in electric vehicle (EV) sales last year, and this trend is forecasted to continue. Electric vehicles are here to stay, and people are
buying themin rapidly increasing numbers. Is 2022 the year you will jump into purchasing an EV?
Challenges in the new car buying market
U.S. News and World Report, overall new car sales in 2021 were slightly higher than 2020 but were still a dismal 2 million below pre-pandemic sales numbers. The last quarter of 2021 showed new car sales decreasing further, but showed a surprising increase in EV sales
Kelley Blue Book.
The global computer chip shortage is largely to blame for the shortage of new vehicles available for sale. Chipmakers shut down in 2020 due to the global pandemic. New cars require many computer chips, and the simple rules of supply and demand are at play.
There simply aren’t enough available chips to meet the demand of many different industries, including the auto industry. The result is that it is hard to find a new car right now, especially if you are looking for something specific. Chipmakers are scrambling to catch up, and consumers are caught in the middle.
What is going on with electric vehicle demand?
Despite these issues with new car production, electric vehicles have emerged as a winner among new car sales. In the last quarter of 2021,
Kelley Blue Booknoted that EV sales rose by an astonishing 72%.
Sales of EVs are predicted to continue rising.
Tax credits, the appeal of reducing the use of fossil fuels, saving money on fuel, and ease of maintenance are driving consumers towards EVs.
More charging stationsare appearing nationwide, word is spreading, and more people are taking the plunge into the EV market. In 2022, as many as 1 in 7 new vehicle sales may be EVs, almost doubling the current sales trends.
Carmakers have been following this demand, and are answering with new electric vehicles. As chip shortages and supply chain problems are resolved, more electric vehicles will be available for sale, further driving an increase in EV sales.
New EVs hitting market in 2022
Is the time right to buy an EV? This year will likely be the biggest year in EV sales yet, making it more mainstream and more convenient than ever.
Finding insurance for your electric vehicle
If you do decide to take the plunge into buying an EV, let
Jerryhandle your car insurance needs. Download the app, answer a few easy questions, and in roughly 45 seconds, you could be saving an average of $887 a year with quotes from top insurance carriers like Nationwide and Progressive.
Jerry will help you with every step of the process, and will even help cancel your old policy right on the app!