Written by Devan

We’re at the tail end of the COVID-19 pandemic and things are going back to normal. However, there’s still a significant supply shortage of new cars around the world. This has caused many automakers from Perodua to Honda unable to fulfill their backlog of orders stretching months, leaving consumers like us no choice but to wait.

So what’s causing this shortage of new cars and what should you do if you want a car now?

continuing new car supply shortage: what is causing it?

Semiconductor Chip Shortage Disrupting New Car Supply

The main factor disrupting the global supply of new cars is the shortage of semiconductor chips or microchips. Since modern cars are packed with electronic components, they need a lot of microchips to keep everything running. Microchips function as the ‘brain’ of modern electronics and components such as the infotainment system, power windows, reverse camera, and safety equipment all need microchips to work.

Why Is There a Semiconductor Chip Shortage?

When the pandemic started and demand for new cars dropped, car manufacturers stopped their order of semiconductor chips from suppliers. At the same time, other companies, especially consumer electronics firms were ordering more to keep up with demand. When countries opened up and the economy started to improve, automakers found it extremely difficult to obtain new microchips and had to wait at the back of the queue for them.

Also worsening the situation is the fact that semiconductor chip manufacturers require up to six months to restart production of a microchip and another three to five months to actually produce them. With the non-stop demand for semiconductor chips from all industries, car manufacturers and consumers have no choice but to wait it out.

Parts Supply Disruption

Another factor contributing to the car supply shortage is the disruption in the production of car parts. Part manufacturers and vendors were also somewhat affected by the pandemic with problems ranging from supply issues to COVID-19 infections among employees. This has slowed down car production among some car manufacturers, especially in Malaysia. That being said, the car parts supply is recovering in 2022, leaving the semiconductor chip shortage as the major issue causing delays in new car delivery.

What to Do If You Need to Buy a Car 

If you’re looking to buy a new car, you should expect to wait a few months to receive it. For some popular models such as the Perodua Myvi, you might even need to wait six to twelve months for your car. So if you’re set on getting a new car, talk to your sales consultant to get a general idea of when you can get it before you place a booking.

continuing new car supply shortage: what is causing it?

Buy a Pre-owned Car

Alternatively, you can buy a pre-owned car and get it within days. Although a pre-owned car may not be as glamorous as a brand new one, purchasing pre-owned can save you a lot of money thanks to its depreciated value. That’s not to say you’ll be buying a rundown car though.

Since cars typically lose 20 percent of their value in the first year and up to 60 percent in the fifth year, it’s fairly easy to find a good pre-owned car with low mileage and reasonable price. Moreover, Carsome has Carsome Certified pre-owned cars that are guaranteed quality having passed a strict inspection as well as refurbished to peak performance.

Fix & Maintain Your Current Car

If you’re shopping for a new car but have an older one with some mechanical issues, you could fix and keep your car maintained till the new car supply shortage is fixed. Of course, you have to consider the condition of your car as well. If it’s too costly to fix or unreliable to drive, you may be better off buying a pre-owned car now.

Buy Carsome Certified Cars Without Delays

With our large selection of Carsome Certified cars all ready to be driven, you can buy and drive your dream car within days as the listings are readily available for purchase. All you need to do is to book the car on our website, take it for a test drive, and submit the required documents so we can handle the paperwork. Once your payment is successful or your loan is approved, we can even deliver the car to you for a hassle-free experience.

Besides being able to get your car without any delay, buying a Carsome Certified car means you get uncompromising quality. Plus, we offer these promises for your peace of mind:

  • Quality cars guaranteed: We put all our cars through a 175-point inspection to ensure it’s free from major accidents, frame, fire, and flood damage. Every Carsome Certified car also goes through the Carsome Certified Refurbishment Process which covers the interior and exterior to go beyond global standards, ensuring each car has complete comfort, safety, and a refurbished aesthetic.
  • Five-day money-back guarantee: If you buy a car from Carsome and are not happy with it, You can return it within five days and get a full refund. No questions asked!
  • One-year warranty: All Carsome Certified cars also have a one-year extended warranty for your peace of mind.
  • Fixed price: The listing price you see on Carsome is the actual full price of the car with no hidden fees, so you know exactly how much you’re paying.

So what are you waiting for? Visit Carsome to find your dream car today!

Keyword: Continuing New Car Supply Shortage: What Is Causing It?

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