Why There Are Limited Cars Available At The Moment?


Posted by Motorama in Buyer Advice


Want a new car this year? Then you should order now!

If you have driven past one of our Motorama stores lately, you will have noticed a few empty spaces on the yard! Across all the Motorama dealerships, we are seeing a surge of demand across all makes & models.  In particular, utes & SUV's, are proving extremely popular.

"The last couple of months have really seen demand for both new and pre-owned cars across all our brands really ramp up" said Costa Pappas, Motorama Group COO.

"A combination of tightening vehicle supply, coupled with a demand spike induced by a number of factors - some exciting new models, consumers upgrading to a new vehicle to either better explore Queensland, to complement their new caravan or boat purchase, or to perhaps reduce their reliance on public transport, has really been evident", Costa said.

Why is car supply so tight?

Supply of new vehicles has begun to tighten since mid-2020.

"Australian's spent $26 billion on overseas travel in last year. With the current travel ban, they've started spending some of that money on new cars to explore their own backyard. Added to this, COVID restrictions have impacted overseas manufacturing plants' abilities to operate with full staff & are at full production capacity, further impacting supply chains " Costa added.

On top of that, there is an international chip shortage going on. What that has to do with your car you ask? Micro chips (or semi conductors) are found in almost every product you use, like you phone, computer, TV and your car. Plus, they power the factories that make all of these things. They're in high demand, but that demand isn't being met for a couple of reasons.

The COVID pandemic has increased the demand for electronic products.   Unprepared for this, chip manufacturers were unable to keep up.  Added to this is the fact that the U.S. Government placed restrictions on China’s biggest chip manufacturer, droughts and fires have plagued the factories & countries where most chip manufacturers are located.  These factors have all significantly reduced the ability to produce new chips.

Every car needs about 1500 chips, so while the rest of the manufacturing process continues, they won't be able to leave the factory until the chips are received, installed and programmed.  At the moment, car manufacturers are catching up, but delays will continue into the foreseeable future.

What does this mean for you?

Simply put, if you're considering upgrading or getting a new car this year, placing an order into future production is by far the best option to secure the car you really want.

"Stock is limited for the majority of our brands. A lot of our stock is selling very quickly, well before it hits the showroom floor.

This spike in demand has a flow on effect to used cars also. Demand for used cars is surging, and with tight demand in the new vehicle space, it is a good opportunity to look at trading in your current car.

"Whilst you may not get a huge discount on a new car due to the tight supply, you should receive a better then usual resale / trade in value on your current car - particularly if it is a SUV or Ute", Costa commented.

How can we help ?

If you're thinking about buying a new car, make sure you contact one of our stores today and discuss availability on your desired car.

Placing an order gives you the best chance of securing a car sooner - or if one does happen to come out of production earlier. You can also get ahead of the crowd by generating an online trade in price for your current car. Rest assured that Motorama have some of Australia's largest volume dealers - chances are we can secure you the exact car you want from production, or perhaps sooner.

Don't forget, if you buy a 4x4 from any Motorama dealership, you automatically join Motorama 4x4xMORE. This opens you up to exclusive invites to tag-along with the team to some of Queensland's most iconic off road locations and expert advice.

Motorama have one of the largest selections of quality Pre-Owned cars for sale in Brisbane. If you are in the market for a second hand car, we will have the right car for you at our three convenient dealer locations.

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At Motorama, we don't just sell cars, we sell them as well. And we're especially keen to buy your car! Get an instant offer now which is valid for 7 days. We want to make the process as simply and quick as possible. Experience it now!

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