Good Luck Finding a New Toyota 4Runner at Car Dealerships
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A global semiconductor computer chip shortage is causing a decrease in car production, particularly the Toyota 4Runner, according to Autotrader.
Because of the computer chip shortage, some automotive factories have had to shut down temporarily in recent months because they can’t finish new vehicles without all the parts.
Pent-up demand caused by COVID-19 restrictions and a bustling economy are also being blamed for the lack of new vehicles, and it’s affecting all different types of cars, with models nearly nonexistent on some lots.
But Toyota is being hit even harder.
There is a standard metric used in the automotive industry that determines how many days it would take for a dealer to entirely run out of a specific model if the supply was cut off. Using this metric, Toyota dealers have the weakest inventories, with an average of 18 days’ supply.
So, if the automaker stopped shipping new cars from its factories, lots would be empty in under a month.
Toyota and other automakers are having a difficult time keeping new cars stocked | Twenty20
The Toyota 4Runner supply
The Toyota 4Runner SUV is one of the oldest designs on the market, and it’s reportedly down to just nine days’ supply (per Autotrader).
In fact, some of Toyota’s biggest dealers don’t even have a single Toyota 4Runner in stock. In addition, other dealers are selling the cars for more than the list price.
But Toyota is not alone—other car companies are also feeling the effects of the shortage.
The Chrysler Pacifica is also experiencing a severe shortage, with less than 20 days’ supply.
General Motors’ large SUVs, including the Chevy Suburban and Tahoe, GMC Yukon, and Cadillac Escalade, are also being affected by the shortage. For the big SUVs, which can cost as much as $100,000, it’s estimated that dealers have less than 25 days’ supply on average.
Traveling to buy new cars
The U.S. Bureau of Economic Analysis says that inventory of new vehicles has dropped to 254,800, down from 396,500 at the beginning of 2021.
It’s getting so bad that some car buyers are even traveling to other states in order to purchase the car they want, according to USA Today.
In fact, nearly 10% of shoppers traveled out of state to purchase the car they wanted, according to a survey conducted by Cars.com. There were 12,000 respondents to the survey, and 56% bought a new vehicle, while 43% bought a used vehicle.
Distance traveled to get a new vehicle varies—51% traveled 25 miles, 20% traveled 50 miles and 13% went more than 250 miles.
Increase in used car prices
The shortage has also helped cause an increase in used-car prices, since newer vehicles are harder to find. However, USA Today says this also means that trade-in values are also increasing, which is good news for car shoppers.
In fact, car-research site Edmunds said that in March, trade-ins averaged $17,080 for the month, which is an increase of nearly 21% from the same period a year earlier.
It’s unclear when the computer chip shortage will end, however, the Biden administration has promised to increase federal funding for the semiconductor industry.