Automotive

Car manufacturers (Toyota as of now) to cut productions by 40% due to chip shortage | Used car prices to spike

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  • Aug 20th, 2021 5:44 pm
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Nov 20, 2004
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Car manufacturers (Toyota as of now) to cut productions by 40% due to chip shortage | Used car prices to spike

Toyota is the first one to cut production by 40%

https://www.bbc.com/news/business-58266794

Rumors are Honda is probably going to do the same. Ford has lots full of half built vehicles sitting at the factory.

Used car sales had a slight dip, but now with this news and probability of other manufacturers cutting productions; it's going to drive up the prices even higher.

Good time to sell your TRDs, TypeRs or whatever gold nuggets you guys are sitting on lol. Better have another vehicle to last you till the end of 2022 though, as that's when the chip supply chain will return to normal, as per some articles.
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Just last week I went to test drive the Toyota RAV4 hybrid in the hopes of putting down a deposit. The salesman (who are always optimistic) provided a waiting period of 2-3 months. I didn’t like the car or else I would have been waiting well into the next year.
”If you buy things you don’t need, soon you will have to sell things you need.”
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I picked a heckuva time to explore the market. That being said, there are still tons of used vehicles priced reasonably if you're looking for a sedan that's a little older than 4-5 years. What I find is that low mileage versions of the more popular CUVs are highly sought after right now as frustrated new vehicle buyers shift their attention to those that are nearly new - and I do notice that those particular models are priced accordingly. It's made worse by the rental car industry having dumped a big chunk of its fleet last year and not having replaced them with new model purchases - that industry's behaviour can have a big effect on the supply of used cars. Last year, that temporarily softened prices and this year it is going the other way.
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GM N/A plants have been down for weeks and just extended.
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Holystone wrote: Just last week I went to test drive the Toyota RAV4 hybrid in the hopes of putting down a deposit. The salesman (who are always optimistic) provided a waiting period of 2-3 months. I didn’t like the car or else I would have been waiting well into the next year.
RAV4 Hybrid is always in demand, even before pandemic.
Same with Sienna, they are just popular cars and get sold fast and there aren't a huge production with Hybrid.

I feel that this will be a holding off point for salesperson not to give you a deal even after the shortage get easy down.

So if you don't need a brand new car, just hold on for now. No point to pay what you aren't suppose to pay.
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There is at least one way to mitigate this shortage. At least one automaker is re-programming the firmware in their vehicles to be able to use alternative chips.
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Rob_EV wrote: There is at least one way to mitigate this shortage. At least one automaker is re-programming the firmware in their vehicles to be able to use alternative chips.
Unless those alternative are potato variety....

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