Parts Shortage from Chip

Friday, December 17, 2021

Until recently, cars were simple machines. In fact, even in the early 2000s most cars had only a handful of electronic control units, or ECUs as they're called. These tiny control units use semiconductor microchips to moderate various aspects of the engine and other electronics of the vehicle. However today, vehicles can have dozens of ECUs and even more semiconductor chips. Semiconductor chips are tiny in size but complex and time-consuming to make. According to Statista, most semiconductor chips are manufactured in Asia, and when the world shut down at the beginning of the COVID-19 pandemic, semiconductor factories were left idle for months. In a perfect storm - due to more people working and doing school from home - the need for devices that use ECUs increased, creating the chip shortage bottleneck.

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

The impact of the chip shortage on the new car market

As with any commodity where supply is low and demand is high, low availability and high prices have become the name of the car buying game. Limited supplies have caused many customers to settle for a car they don't really want just because it was available, and pay a market adjustment of several thousands of 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 Cypress, however, have anticipated these bottlenecks and are here to help anyone looking for a new car.

How Volkswagen Cypress 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 Cypress is about to become your best friend. "We have 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 Alex Garcia, general sales manager at Volkswagen Cypress. "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 Cypress 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 strive to make the new car buying experience positive regardless of the shortage we're experiencing! We believe our customers will remember that."

Part of the positive treatment at Volkswagen Cypress 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 a steady-stream of new cars weekly," said Garcia. "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 Cypress is also offering as low as 0% APR on the remaining 2021 models, no payments until next year, and low leases during their Sign Then Drive promotion on 2022 Volkswagen models. Plus, Volkswagen Cypress is home of the MSRP Vehicle Exchange where guests can get the original base MSRP for your trade-in, deducting only for mileage, manufacturer incentives, and any damage. (2010 and newer and excludes high lines).

In addition, Volkswagen Cypress has a pre-order reservation platform for its popular electric vehicle, the ID.4. Interested buyers can custom-build and order their new EV right from VW Cypress's website 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 Garcia.

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

Find out more by visiting Volkswagen Cypress today.