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New truck sales; waiting on chips |
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WF owner
Orange Level Joined: 12 May 2013 Location: Bombay NY Points: 4398 |
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From what my Ford dealer is telling me, if you start over, it may well be a year before you get a truck. He said they are not giving an expected delivery date to anyone looking for a new truck right now.
I ordered my truck January 29, 2021. I picked it up April 20 (it was in the week before, but I was out of town). The general manager told me if I had waited two weeks later to order, I probably wouldn't have got the truck until fall. I really feel bad for the dealers. I deal with a local dealership. They are straight shooters and members of our community. They have a good business, but very few vehicles to sell. |
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WF owner
Orange Level Joined: 12 May 2013 Location: Bombay NY Points: 4398 |
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No dealer is going to eat a $2500 upgrade, especially with supply being so bad. They actually have waiting lists of customers looking for vehicles. Several local new car dealers are actually buying used cars, so they have something to sell. Jay, you need to take a look at local dealers. There are no vehicles sitting on any dealer lots for 3 months. I recently heard of a dealer that has a selling price of $5000 over sticker price for a new truck. The value of used vehicles is way up, because demand is way up, due to the lack of new vehicles. I traded in a 2016 F-350 Lariat 4x4 diesel with 56,000 miles. The dealer had it listed for $56,600 (sticker was $64,800 new).
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Tbone95
Orange Level Access Joined: 31 Aug 2012 Location: Michigan Points: 11393 |
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So true WF, the local dealers are really taking a beating. 2 of them have taken the opportunity to seal coat their lot, almost no cars to move. It’s nuts. A couple people I know have ran into a dealer or salesman off hours and they offer to buy your car on the spot. I’m beginning to wonder how long they will stay in business, it’s not like there’s huge numbers move in this area to begin with.
Was hoping to get a better vehicle for my son before he went to Mississippi, price on the model we were looking at went up 15% in a two to three week period. (Used) |
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WF owner
Orange Level Joined: 12 May 2013 Location: Bombay NY Points: 4398 |
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There is a good article on Yahoo News today about causes of the semiconductor shortage.
Here is a little of the gist of it. Many factors conspired to cause the semiconductor shortage that’s constraining the production of cars and many other products. The coronavirus pandemic massively disrupted supply chains. Remote workers stocked up on chip heavy computers and other gizmos. Same with bored consumers doing more streaming and gaming. Fires at two Japanese chip plants cut into supply. Then a surprisingly strong recovery produced demand far more robust than manufacturers expected. In 2018, as part of the trade war with China, the USA imposed 25% tariffs on $34 billion worth of Chinese imports, including semiconductors—the first of several salvos in the trade war with China. Those tariffs are still in effect, and chip imports from China have fallen by half as the price has gone up China now accounts for only about 5% of imported semiconductors, according to research firm Panjiva. But imports from other countries have not gone up to offset the lost supply from China. A 5% contraction in supply during a shortage can have outsized effects. In 2019, the USA banned the sale of American-made components, including semiconductors, to the Chinese telecom giant Huawei, in an effort to disenfranchise the maker of networking gear and smartphones. That had several undesirable consequences. For one, it created a disincentive to make chips in the United States because producers couldn’t sell them to one of the world’s largest customers. Huawei begin to get chips from suppliers in Japan and South Korea that weren’t subject to the ban. China also boosted its own production of chips, and it began hoarding them, in case the U.S. action intensified. The U.S. semiconductor industry says the actions cost U.S. firms millions in sales The trade actions were meant to address legitimate Chinese abuses. But this unilateral approach left China many escape hatches while causing substantial collateral damage. The fiasco contributed to the current shortages, hurting American businesses and workers |
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