Why is There a New Car Inventory Shortage?

The new car inventory shortage is evident at dealerships throughout the East Greenwich area. Why is it so hard to find new vehicles right now? This crisis is largely due to the worldwide automotive chip shortage. Learn more about the car inventory shortage, then let BMW of Warwick help you find the car you want!

What is the Automotive Chip Shortage?

The new car inventory shortage was precipitated by the global pandemic. Anticipating that car sales would slow down, automakers began to look for ways to scale back production to prevent overspending. As a result, they reduced their orders for semiconductor chips.

Modern vehicles incorporate thousands of semiconductor chips which enable the advanced technology features that add comfort, convenience, and connectivity, as well as enhance performance capabilities and vehicle safety. The ripple effect led to manufacturing plant closures and slowdowns and the automotive chip shortage. Subsequently, the car inventory shortage we are experiencing now is a simple case of supply being unable to meet demand.

The automotive chip shortage also forced manufacturers to decide between either releasing vehicles without certain essential features or halting production altogether. What we’re currently seeing is:

• A new car inventory shortage at not only Providence-area dealerships, but around the world.
• Greater demand for used cars has caused used car prices to increase significantly.

There is an upside to the demand for pre-owned vehicles. If you are looking to sell your current car to a dealership, you’ll find that the increased value of used cars will mean that you’ll get more in cash or trade. We buy used cars here at BMW of Warwick, and you can expect to receive the fair market trade-in value for your car, truck, or SUV at our dealership.

We Can Help You Find the Car You Want

The car inventory shortage and automotive chip shortage shouldn’t keep you from getting behind the vehicle that will best suit your lifestyle and your budget. In addition to taking advantage of our vehicle finder service, you also have the option of custom ordering a new BMW. Our team can help you configure the vehicle to your exact specifications and order it directly from the factory. This means you don’t have to worry about limited selection or prices that have been driven up by demand.

Explore Your Options Today at BMW of Warwick!

The new car inventory shortage and automotive chip shortage won’t last forever, but rather than waiting it out, you can find plenty of high-quality options in the used and certified pre-owned vehicle inventory at BMW of Warwick. You can also order a brand new BMW that has all the features and specs you desire and take delivery in as little as 90 days, depending on the model you choose. Please don’t hesitate to contact us for more information.