Will Car Inventory Shortages Continue This Year?

new cars for sale parked at a dealership lot

Empty dealer lots and painstakingly high prices for new and used cars continue to beset buyers with car shortages that will continue into the second half of 2022.

Key Takeaways:

  • Microchip shortage continues to persist in the auto industry
  • Car dealers grappling with low car inventory
  • Limited incentives from car manufacturers
  • Car buyers will pay more for new cars

The past year was tough for car dealers and new car buyers. And 2022 looks to be no different. Will inventory rebound and car prices normalize? If you don’t want to postpone a car purchase, what are your options for buying a car? Here’s a low down on 2022, what’s ahead for the auto industry, and whether you should put off your decision to buy a car.

What does the auto market look like?

Car inventory levels have fallen to their lowest since the global financial crunch of the late 2000s. However, vehicle production is on an upward trajectory. Top automakers believe that shortage won’t get in the way of vehicle production.

While the worst of the car inventory crisis might be behind us, automotive analysts project that chip shortages and other limiting factors will curtail production till 2023. 

Car sales is expected to surge in the second half of 2022 and may rebound to pre-covid levels, for better volumes in 2023 and 2024. However, scarce raw materials and workforce challenges could prolong the crisis.

Car sales forecast for 2022

Market analysts are cautiously optimistic with their sales forecasts for 2022 due to car market volatility. Projections range from about 15.2 million units to 16 million or slightly more, up from an estimated 15 million in 2021.

What’s ahead for the rest of 2022? Pretty much the same trend we saw in the past year. New car buyers will face higher prices while car dealers will grapple with low inventory. On the bright side, shoppers looking for electric cars have plenty of options.

Low car inventories

Eager to get a new car? Not so fast. Car dealers will continue to have nearly empty lots and receive fewer customers. And the ripple effect is being felt by car dealer auto transport services. If you’re in the market for a new vehicle, expect to pay near sticker prices or slightly more on brand-new cars.

Microchip shortage continues to bite, but carmakers are wiggling their way and learning to adapt to push production lines. As semiconductor manufacturing resumes in Asia, its likely chip shortage will ease in the coming months.

Higher prices for new vehicles

As vehicle demand grows, new car prices are on the rise. New car buyers will dig deeper into their pockets to get their favorite rides. In 2022, carmakers shipped 8 million few cars than anticipated due to part shortages. Even if production resumes, car dealers won’t likely build back inventories for the remainder of 2022. Expect limited choices and surging prices to continue. Industry data shows a new car costs $8,000 more than in 2021.

Historically, car buyers have been flocking dealer lots across the country to grab irresistible holiday deals and end-of-the-year sales. Any holiday season and year-end deals? Car sellers and dealerships may not entice would-be buyers with incentives till early 2023 or thereabouts.

What are your car-buying options?

Four options are on the table for new car buyers. You can:

  1. wait for the market to stabilize
  2. buy a used car
  3. look for an electric car
  4. trade in your vehicle

While soaring used car prices are bad news for those who can’t afford brand-new cars, 2022 might be a good year to trade in your vehicle. Higher trade-in prices means extra capital that can lower the finance share for purchasing a new ride. Low interest rates can take the sting out of monthly car payments.

Car buyers going online

Pre-COVID, buying a car meant walking into a local dealership, perusing papers, and waiting for credit approval after intense price negotiations. Things have changed.

Nearly 30% of new car purchases are now made online. If you’re looking for a used car, you can bypass traditional dealerships and fast-track your purchase with online used-car sellers. Low inventory has changed the belief that you can walk into a dealership on a Saturday morning and drive off with a new ride just in time for a weekend trip.

Because car dealers are hiking new car prices, financiers value those at 120% more than their actual value. Such outrageous value inflation means it’s difficult to get a new car loan with less-than-perfect credit. And if you do get a loan, the lender will slap you with a higher interest rate.

How long will you wait?

Three months, half a year? Perhaps a little longer. Consistent low car inventory means demand is at an all-time high. Enthusiastic car buyers snap up cars faster than they roll off the assembly line. As a result, car buyers put in orders for new cars even before they’re shipped to dealer lots.

Anyone seeking to buy a car without putting an order will wait for several months – a tough situation. Meanwhile, you can learn how auto shipping works while waiting for your order to be processed.

Ship your car with us

We know buying and shipping a car can be a real hassle. Don’t worry. Mercury Auto Transport can ship your car coast to coast or to any U.S. destination for a flat fee. Our friendly and helpful agents are a phone call away and can help you find the best deals from top carriers. For fast and professional service, get in touch with us today.

Facebook
WhatsApp
Twitter
LinkedIn
Pinterest

Responses

Get a quote.

Transport Vehicle FROM
Transport Vehicle TO
Vehicle Year
Vehicle Make
Vehicle Make
Vehicle Model
Vehicle Model
Vehicle Type
Destination
2
Vehicle
3
Date
Full Name
Phone Number
Email Address
Available Date
Additional Information
Location
Vehicle(s)
3
Contact & Date

Thank you!

Thanks for submitting the form. You will be receive an email shortly.

What Our Customrs Are Saying

FAQs

We feel it’s important for you to know how we determined your quote. Quotes are based on what the market demands for cars to be moved at a given time. Each quote is compared with the current rates on the National Load Board before being sent to our customers and will be reviewed periodically through the process.

Other companies might offer you a lower price to obtain your business. This method is ineffective because if the car does not pay the correct amount of money, it will run the probability of not getting loaded or transported on time. You will not get this information from our competitors. Truck drivers always take the loads that pay the most first, leaving the loads that are mispriced to be moved last or not at all. We try very hard to avoid this with our customers by quoting a fair but realistic quote up front. Visit our How we determine your quote page for more information.

Understanding auto transport insurance is important and we think it’s valuable to explain how it works. As part of providing a great car transport service, it is our job to guarantee that the carrier we assign to pickup your vehicle is licensed and insured. Click here to check out our license.

When you go with Mercury to ship your vehicle, you can rest assured that the carrier assigned to move your car is fully insured and licensed with the FMCSA (Federal Motor Carrier and Saftey Administration).

Your vehicle is covered by the carrier’s insurance policy that is doing the shipping. Depending on the type and size of the truck/trailer that is shipping your car, the insurance policy can cover from $100,000 to $1,000,000 of damage.

We have also provided a checklist to explain what you need to do at both pickup and delivery in case there are any issues so, you can file a claim and know that everything will be taken care of.

It is rare but, time-to-time there may be accidental damage while in transit and it is good to know that your carrier’s insurance will protect your auto shipment in that event.

To view a sample BOL (Bill of Lading) and learn what to do in case of accidental damage, please check out our Condition Report and Procedure checklist.

When comparing auto transport companies, keep in mind that low-priced quotes often result in delays in getting your vehicle loaded. Choosing the right broker is vital to getting a reputable carrier for the lowest price possible.  

We feel it’s important for you to know how we determine your quote.

When you’re looking for a car shipping rate, you want to understand how auto transport works. Prices are based on seasonal market demands for cars to be moved at any given time. Each quote is prepared based on the season and the current national rates.

When comparing auto transport companies, keep in mind that low-priced quotes often result in delays in getting your vehicle loaded. Choosing the right broker is vital to getting a reputable carrier for the lowest price possible. Not all brokers are created equal in this talent.

Mercury does a thorough background check with each carrier for every shipment. We verify their ratings, references, and in addition, we obtain a certified copy of their insurance certificate, directly from the government agency that it is on file with.

You can have peace of mind knowing that the carrier shipping your vehicle is the very best and that there are no surprises guaranteed.

Mercury Auto Transport is licensed, Bonded and Insured. Our FMSCA Motor Carrier Number is MC647319.

While we do our best match your auto shipping needs with the most responsible carriers with the best track records, from time-to-time there may be accidental damage while in transit, it is good to know that the insurance of the carrier we locate for you will protect your auto shipment in that event.

Shipping a vehicle can be stressful if you don’t know what to do.  This is why we believe it is paramount to have our highly trained agents be your main point of contact from start to finish.

They will go over everything you need to know so you can relax.  In the meanwhile, we prepared this checklist.  This includes everything from pickup to delivery and how to make sure your car is ready for pickup.

When it comes to car moving, we want you to be ahead of the game!  For any questions and further assistance our agents are standing by, (800) 553-1828.  Please read our checklist to prepare your vehicle to learn more.

There are several ways you can ship a car.  The options include enclosed trailer, open carrier transport, flatbed truck, door-to-door shipping services, and to or from a terminal as well.  The most popular of the options is a 7 to 10 car open carrier.  These large trucks can accommodate almost any size vehicle including carsSUVstrucksjeeps, and vans.

Open car transport, door to door is also the best way to get the cheapest auto transport rate possible.  To learn more and see what transport method is best for you, please fill out our free quote form and one of our representatives will respond to you within minutes.  You can also call us at (800) 553-1828.

We present offers from FMCSA Licensed and Insured Carriers. When you accept an offer, we send your service agreement that guarantees the price, door-to-door service, and 100% bumper-to-bumper insurance. There are never any hidden fees or charges, guaranteed.