Take a drive around San Bernardino County and take a good look at car dealership parking lots. Do you know what you’ll see? Plenty of empty spaces. Even now, several months after auto production was supposed to pick back up again, dealerships just don’t have the inventory. That’s good for you if you have a high-quality used car you’re looking to part with. It is a lot more valuable these days.
A lot of people don’t realize just how much of a supply-and-demand business cars are. Cars are more like real estate than other high-ticket items simply because we live in a very mobile society. You need to have a car to get around. But more than that, we Americans have a love affair with our cars. That’s why there’s always a market for new models.
Right now, production isn’t keeping up with demand. Why? It all boils down to a semi-conductor shortage. In other words, there aren’t enough computer chips to keep domestic and foreign manufacturers happy. But people still need cars one way or another. That is why we still offer cash for cars in San Bernardino County.
Computers Control Everything
In the ‘good old days’ before computer technology, everything built into a car was either mechanical or electrical. Engines had old-fashioned carburetors rather than electronic fuel injectors. Car radios produced music by way of mechanical oscillators. There was no satellite radio. There was no electronic ignition, rear backup camera, or electronic brake assist.
Over the last 30 years, cars have become increasingly more reliant on computers. And wherever you have computer software controlling how a car operates, you also have semi-conductors. You have little computer chips controlling just about everything – from rolling down the windows to managing climate control.
On the one hand, so many computer chips are helpful when it comes time to diagnose problems. A car can be hooked up to a repair shop computer and analyzed in mere minutes. A complete scan of the car’s diagnostics can pinpoint repair issues quickly and accurately. It is bad in the sense that computerized cars:
- are more costly to repair
- require a whole different skill set
- are more likely to break down.
We have become so accustomed to computers that we don’t even think about them anymore. We don’t realize the sheer volume of computing power involved in getting from one place to the next on the freeway. But with the ongoing car shortage, we are starting to get a hint.
COVID-19 Production Shutdowns
So now we know why manufacturers aren’t producing as many cars. But why the semi-conductor shortage? It all started with the COVID-19 shutdowns implemented in 2020. Understand that the vast majority of computer chips we buy in this country come from Asia. Also note that the coronavirus began its spread in that part of the world. China, Japan, and other Asian countries were the first to implement widespread shutdowns.
Even as coronavirus was spreading across Asia and Europe, people in the States were still buying and selling cars. When we did finally shutdown, it was supposed to be only for 15 days. But when those 15 days came and went, people stuck at home started buying consumer electronics containing – you guessed it – computer chips.
Things were not too bad for the car companies at first. They shut down. For a time, there was a pause in new car sales. But as soon as dealerships began opening their doors, the buying public responded. People decided it was time to treat themselves to a new car, especially given that they wouldn’t be hopping on planes and flying anywhere.
Meanwhile, factories started opening and producing computer chips. But they were so far behind that catching up wasn’t going to be an overnight thing. Subsequent shutdowns in China only served to hamper efforts to resupply the market with computer chips.
The Shortage Is Expected to Continue
We wish we could say that the computer chip shortage was nearing an end. But we cannot. Experts say the shortage continues and will likely do so through next year. It is not clear why, given that so many industries have restarted and are nearing full production once again.
Unfortunately, carmakers are still waiting for those chips. Until they can get what they need, production has to be slowed. It is either that or they have to produce cars and trucks that don’t have all the electronic wizardry consumers have come to expect. That brings us to selling your used car.
Now Is a Good Time to Sell
Your high-quality used car is really valuable right now. Yes, it’s true that some people will only buy brand-new. They are willing to wait it out until new car inventories are back up. But there will always be people in need of cars. Whether you are talking people who have to replace accident-damaged cars or young people getting that first car in order to get to and from school, demand will always be there.
If there are not enough new cars to keep up with that demand, buyers have no other choice but to look at good quality used cars. The demand for used cars is so strong right now that dealers are calling their customers to ask if they want to sell. Maybe your dealer has already called you.
Just know that your dealer will probably not pay as much as we will for your car. If you are looking to sell a car in Kern, Los Angeles, San Diego, etc., Car Fast Cash is an option. We think it is your best option. We pay cash for cars. Just contact us and we will come to you. We will appraise your vehicle and, if you agree, pay you cash and take it away.
Your good used car is more valuable today because of the ongoing new car shortage. If you have been considering turning a car into cash, now is a great time to sell.