Global chip shortage limiting supply of cars

FILE - In this aerial photo, mid-sized pickup trucks and full-size vans are seen in a parking lot outside a General Motors assembly plant where they are produced Wednesday, March 24, 2021, in Wentzville, Mo. (AP Photo/Jeff Roberson)
FILE - In this aerial photo, mid-sized pickup trucks and full-size vans are seen in a parking lot outside a General Motors assembly plant where they are produced Wednesday, March 24, 2021, in Wentzville, Mo. (AP Photo/Jeff Roberson) (Copyright 2021 The Associated Press. All rights reserved.)

JACKSONVILLE, Fla. – Having trouble finding a rental car or have you noticed prices for cars has gone up? There’s a reason for that: Car manufacturers just don’t have the supply.

So while the Jacksonville International Auto Show will be packed with cars, that’s not the case necessarily on car lots. A global shortage of microchips is a major reason for this.

The microchips are needed for all that tech inside cars. From driver’s assistance to airplay, they’re even needed for the car’s engine.

When the pandemic hit, automakers canceled their orders for the microchips, and now that people are buying cars, the supply just isn’t there.

Automakers are now prioritizing their production by using microchip supplies for their most profitable models, which are full-size pickups and SUVs.

According to industry analysts at J.D. Power, the average price of new vehicles reached $37,314 in the first quarter of 2021. That’s $3,000 more than that same time last year and $4,000 higher than in 2019.

Just because the supply is limited, it’s still a good time to buy a car because interest rates are at a record low.

But car experts say that if you are going to buy, do it now because you’re more likely to get the exact make and model you want compared to if you wait and this shortage continues.

Global chip shortage limiting supply of cars
Global chip shortage limiting supply of cars

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