COVID Causes Scarcity of New and Used Automobiles – and Leases | Central County Gazette

RON KRATZER, Gross sales Supervisor at Joel Confer Ford, has been within the automobile gross sales enterprise for over 50 years.

BELLEFONTE – Ron Kratzer, Gross sales Supervisor for Joel Confer Ford in Bellefonte, has been promoting automobiles for over 50 years.

“I bought my first automobile once I was 15,” Kratzer mentioned. “I’ve seen all the things.”

For the reason that COVID-19 outbreak began inflicting shutdowns final yr, Kratzer has mentioned his firm is “doing very effectively” by way of gross sales.

“This yr is a yr once I by no means thought costs may go as excessive as at public sale,” Kratzer mentioned. “The market is so sizzling, and over the previous two weeks we have seen a slight slowdown, however not important. It goes from a loopy peak to a considerably regular peak. “

Throughout the nation, Kratzer defined, there’s a scarcity of recent and used automobiles.

“New car gross sales in the US are anticipated to finish this yr down at the very least 15%, which might mark one of many business’s worst annual declines since at the very least 1980.” declared in December 2020.

“An enormous half is the scarcity of semiconductors to construct new automobiles,” Kratzer mentioned.

Semiconductors are “the ‘mind’ of each digital machine on the planet,” studies The Guardian, and the chip scarcity “has been steadily worsening since final yr” as the availability chain has been delayed on the identical time. time that the demand for brand new televisions, gaming techniques, and so on., have jumped.


The scarcity of auto manufacturing can have an effect on your summer season trip plans, Kratzer warned.

“Automobile rental firms are literally auctioned off to purchase automobiles for his or her fleets as a result of they cannot get new ones from the producers,” Kratzer mentioned. “It drives up the value much more, as a result of usually rental firms public sale off. They run their fleet from time to time – each six months or so – they usually cannot do this now as a result of they cannot exchange these automobiles. So they’re retaining them longer and placing extra miles on their rental fleet, and the journey business has picked up a lot that they’re working out of rental automobiles. If you’re touring to a few of these resorts, you’d higher be sure to have a rental automobile in reserve, as there are quite a lot of worth gongs. I’ve heard of ridiculous costs.


Automobiles at Joel Confer “run actually quick,” in line with Kratzer, who offers recommendation to individuals who want a brand new automobile.

“I might counsel to anybody searching for a automobile, particularly somebody who actually wants to exchange their automobile – the previous one is simply drained and worn out – in the event that they discover one thing that comes near their specs and their wants, I do not hesitate, I might purchase it, ”Kratzer mentioned. “I do not assume it improves earlier than the top of the yr, so far as the easing of costs is worried.

“The previous month has been an awesome month,” Kratzer continued. “The month earlier than was an awesome month, however now our stock is all the way down to lower than half new and half used, in comparison with what we usually have. Subsequently, it is vitally damaging to our gross sales quantity. “

Kratzer provides that slowly however absolutely “issues are returning to a form of normalcy.”

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