This browser does not support the Video element.
North Texas car dealerships have low inventory due to supply chain issues
Now is not the time to buy a new car as the global supply chain crisis is causing new car prices to soar.
ARLINGTON, Texas - Now is not the time to buy a new car as the global supply chain crisis is causing new car prices to soar.
Dealerships across the country have about a third of the inventory they typically have.
Kelley Blue Book says nearly everyone looking for a new car is paying above asking price compared to last year when customers were paying less than listing price.
It’s an industry-wide problem.
Many dealerships don't even bother displaying cars in their showrooms anymore because they're sold so fast.
It’s an issue that has no quick fix.
According to newly published data, people should be prepared to pay about $1,000 above sticker price, depending on the make and model.
Shannon and Matilda Ghanbari are repeat customers at Vandergriff Honda in Arlington. They're in the market for a new car, but finding the right one has been a months-long endeavor.
"It’s frustrating because you almost don’t even have a choice anymore, you have to make a decision with leftover cars," Shannon said.
The dealership's general manager, Yuni Chon, said they currently have just 27 new vehicles on the lot, compared to 400 pre-pandemic.
"If you're buying a new care right now, you're probably walking into an empty lot," he said. "Nine out of 10 times, when we get a truck, 50% are spoken for."
Inventory is so low, there are no new cars displayed in the showroom. Used cars help fill in the front lot, but there are plenty of open spaces.
It’s a problem plaguing car dealerships nationwide.
"We do the best we can, do more with less," Chon added.
It's an issue that shows no sign of improvement.
There's a shortage of microchips needed to complete many makes and models. Many new cars and trucks are stuck at congested ports, according to Kelley Blue Book.
The average price for a new vehicle soared to a record high in October. Due to supply and demand, analysts said people may need to pay nearly $1,000 above sticker price for a new ride.
"Since there's no cars, there's no reason for incentives," Chon said. "Because there's less and less supply, we're having to stand firm on the prices."
The Ghanbaris didn't walk away with a new car but said they'll be back.
According to Kelley Blue Book, the prices of used vehicles have skyrocketed up 26% year over year. That's good news for those looking to sell their used car and pocket the money.
Chon said people are oftentimes getting more than what they paid for the car a few years ago.
RELATED: Arlington ISD meal programs being impacted by supply chain issues