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How one Utah dealer is beating the chip shortage slowing new car availability

How one Utah dealer is beating the chip shortage slowing new car availability

(Volkswagen SouthTowne)



Estimated read time: 4-5 minutes

Not long ago, cars were relatively simple machines. As recently as the early 2000s, most cars had only a handful of electronic control units, or ECUs as they're referred to. These tiny control units use semiconductor microchips to moderate various functions of the engine and other electronics of the vehicle. Today, vehicles can have dozens of ECUs and even more semiconductor chips.

Semiconductor chips are tiny in size but complex and time-consuming to manufacture. According to Statista, most semiconductor chips are made in Asia, and when the world shut down at the beginning of the COVID-19 pandemic, semiconductor factories were left idle for months. While manufacturing was paused, demand increased. Cars, phones, computers — anything that uses semiconductor chips — continued in high demand through 2020 and now through 2021.

Because demand has continued to outpace supply, the chip shortage bottleneck has reduced the number of new cars rolling off assembly lines and into dealership lots, causing headaches for dealers and customers alike.

How one Utah dealer is beating the chip shortage slowing new car availability
Photo: Volkswagen SouthTowne

The impact of the chip shortage on the new car market

As with any commodity where supply is low and demand is high, low inventories and high prices have become the name of the car buying game. If you drive by most dealership lots you will notice they're nearly empty. And what cars they do have are often priced with a market adjustment of several thousand dollars above the manufacturer's suggested retail price (MSRP).

These less-than-ideal buying conditions for customers make it difficult to find the vehicle they're looking for and pay what you've budgeted for — leaving customers with limited options to choose from.

Dealers like Volkswagen SouthTowne have anticipated these bottlenecks and are here to help anyone looking for a new car.

How Volkswagen SouthTowne is bucking trends

If you are tired of walking around empty dealership lots or being told you have to pay thousands more than MSRP to get a new car, Volkswagen SouthTowne is about to become your best friend.

"We have so many customers who come to us after being told by another dealership that they have to pay thousands more than MSRP just to get a new car," said Josh Osborne, general manager at Volkswagen SouthTowne. "Many of these guests had even put a deposit down on that car but were told last minute that the price had changed. At Volkswagen SouthTowne we are still offering great deals and we allow our guests special access to our list of incoming vehicles so they can choose the exact car they want. We know that our guests will remember the fair and positive way we treat them."

How one Utah dealer is beating the chip shortage slowing new car availability
Photo: Volkswagen SouthTowne

Part of the positive treatment at Volkswagen SouthTowne comes from their willingness to allow customers access to their incoming pipeline of vehicles during their VIP Access Sale.

"The car shopping market is very different right now than in years past, so we're eager to help our guests navigate it. The truth is that we're getting truckloads of new cars weekly," said Osborne. "The key is getting your name on the car you want during our VIP Access Sale so it's not sold before it gets here."

Volkswagen SouthTowne is also offering 0% APR on the remaining 2021 models, no payments until next year, and low leases during the Sign Then Drive promotion on 2022s! Plus as always, Volkswagen SouthTowne is home of the MSRP Vehicle Exchange where you can get the original base MSRP for your trade-in, deducting only for mileage, manufacturer incentives, and any damage.

In addition, Volkswagen SouthTowne has a pre-order reservation platform for its popular electric vehicle, the ID.4. Right from their website you can custom-build and order your new EV starting with only a $100 deposit.

"We allow customers to pre-order certain vehicles like the ID.4 EV. Our customers deserve to get the car of their dreams and our VIP Access Sale allows them to do this," said Osborne.

During this difficult time in the car market, Volkswagen SouthTowne is all about providing solutions to its customers — and with their VIP Access Sale, fair prices, incredible trade values and competitive lease deals, Volkswagen SouthTowne is a rarity among dealers.

Find out more by visiting Volkswagen SouthTowne today.

Volkswagen SouthTowne

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