GREEN BAY (NBC 26) — Local car dealerships are feeling the effects of a global computer chip shortagethat has slowed down vehicle production and constrained the availability of new and used cars.
Scott Lade, the owner of used-car dealership West Town Auto, has worked in the automotive industry for more than 44 years. He says since the shortage began, he estimates his inventory is down about 30 to 40 percent.
"The new car dealers ran out of cars and there was nothing coming in. That's when everything kind of got shut down," Lade said.
He says the limited supply at new car dealerships has caused a shortage at used car dealerships as well.
"The most difficult part about it right now is just being able to find good cars. The new car dealers are not selling very many new cars because they don't have anything so they're not taking trade-ins in."
He also says the limited supply is causing prices to increase.
"Prices have gone up significantly, probably 30 percent in the last year and that's just because of supply and demand," Lade said.
Lade says he actually saw a boom in business amid the pandemic.
"There was enough incentive in other areas where people were getting money and all of a sudden they've got an extra four or five thousand dollars in their pocket to buy a car, so they've got a good down payment and they're out buying cars," Lade said.
But although the demand for cars is high, the limited supply makes it difficult for those who are interested in buying. The shortage has caused many to have to travel as they struggle to find the kind of car they want.
"I had people on Saturday say 'We're just so happy that it's still here. We've lost three vehicles'," said Ronald Sedovic, a car salesman at West Town Auto.
"We've sold cars to people from hundreds of miles away," Lade said. "They're looking for something specific and if they find it they're willing to travel for it."
