Car dealers react to car shortages due to the pandemic

Coronavirus

If you drive around Erie, you might see a problem.

Car dealerships seem to have very few new cars on their lots. The low inventory was brought on by the pandemic.

Some dealerships are reportedly adding on fees in the thousands when purchasing a car, but others are sticking with their sticker price.

Throughout the pandemic, we have heard about the soaring price of used cars. Now customers and dealers are seeing challenges when it comes to new vehicles.

The car market took a hit this year due to the COVID-19 pandemic and left places with less inventory.

George Lyons is the president of two car dealerships in Erie including Temporary Motors and Roth Cadillac Audi. Both of these locations are experiencing car shortages.

“There is nothing really on the dealer side that can be done other than pressing the manufacturer for any extra inventory that we can get to have something on the lot to sell to our customers,” said George Lyons, President of Contemporary Motorcar.

While some car dealerships are experiencing a low inventory due to COVID-19, one place has not been affected as much.

“We have seen some times and moments that we struggled to get inventory, but we are always earning inventory as a volume dealership,” said Joe Askins, Auto Express.

On top of the inventory issues, the two dealerships confirmed that some places are adding on additional fees to the sticker price for what’s being called “market adjustment.”

For Askins and Lyons however, this is not an option.

“While it’s challenging to try to have cars for these people, we don’t thing that price gouging or selling over what is our regular sell price is a good plan for the long term,” said Lyons.

“They are not only getting the sticker price, but at times they are $10,000 over the sticker where we have always gave a fair deal to begin with,” said Askins.

If you try to buy a car and see an additional fee added on, Lyons said that the decision to charge comes from one place.

“The invoice price from the manufacturer to the dealer does not change relative to a shortage of inventory. So any mark up beyond regular market pricing is of course done at the dealer level not at the manufacturer,” said Lyons.

Both places have more cars on the way and will help to find any car you are looking for.

According to the U.S. News and World News, the reason for the car shortage is due to a lack of semiconductors and microchips which is also leaving different manufacturing plants to slow down.

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