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Local car dealerships take a hit from computer chip shortage

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MADISON (WKOW) -- If you're in the market for a new car, the computer chip shortage could affect the options you see on dealership lots.

Representatives from Wilde East Towne Honda said they are fortunate to have a good inventory but other dealerships around the area have taken a hit.

"The selection obviously isn't as large when you talk about 75% down from where you're normally at. So you might not be able to get the exact color you want, you might instead of settling for a getting a white car, you might end up with a black car on that," said Wilde East Towne Honda service manager, Chris Niemiec.

According to the Associated Press, auto sales in the second quarter of the year rose about 50% over last year. But sales started to slow down toward the end of the quarter due to the lack of vehicles. Automakers had to cut back on production because of a shortage of computer chips.

Eric Barrows bought a car just last week and was on the hunt for another vehicle for his son. He said he worked in the car business for about 20 years.

"I don't know what they're going to do if the chips situation doesn't straighten out. I mean, I know when we bought the other car, we could only have one key fob because they couldn't send us out with two key fobs because of the whole chip situation," Barrows said.

He said with the unique market, those purchasing cars will probably pay the sticker value of the car.

This increase in demand but low supply pushed some consumers to pay more than the manufacturer's suggested retail price making this the largest yearly increase since 2008, according to the AP.

Payton Muse

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