Auto dealers see pent-up demand, despite global chip shortage

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The demand for vehicle purchases is strong in Rio Rancho, and auto dealers are eagerly awaiting consolidation of their inventory to meet this demand.

More people are outside after statewide COVID-19 restrictions were lifted, ready to invest in a new vehicle. Even if a global semiconductor chip shortage hampers vehicle manufacturing, demand is expected to remain for the foreseeable future.

“This is our chance to help replenish all those vehicles that have been left out, so to speak,” said Andy Strebe, general manager of Chalmers Ford. “If we can get the inventory, we can sell it… We took a huge amount of orders. Most of this year we’ve just had more demand than there have been vehicles available. We have never seen this before.

Chalmers Ford chief executive Andy Strebe said he was seeing pent-up demand for vehicles in the last half of 2021.
Photo by Matt Hollinshead / Observer

Strebe said Chalmers Ford sold 1,869 new and used retail vehicles in 2019 and 2,027 new and used retail vehicles in 2020, an increase of 8.5%. He also said there was enough demand to exceed that number of sales from 2020 to 2021, but Ford needs to send in new vehicles to make sure that happens.

Ryon Bornemeier, general manager of Perfection Honda, just above the city limits of Albuquerque, said his dealership saw sales increase from last year and the state reopening.

Because people haven’t traveled and spent money as often in 2020, he said, some customers were able to save money for a down payment on a new vehicle.

“We have seen good demand,” said Bornemeier, adding that sales of Perfection Honda were up at least 10 percent from last year.

He said consumer confidence appears to be higher with the market rebound, coupled with people being more eager to get out and get back to normal rio rancho

Bornemeier said it was difficult to say whether improving status in 2021 would help offset challenges in 2020, but added that Perfection Honda is on the right track.

The Chalmers Ford inventory bundle, seen here on Monday, July 12, 2021, is awaiting more vehicles to arrive later this fall.
Photo by Matt Hollinshed / Observer

Car dealers are waiting for the chip shortage to be resolved and new inventory to fill their vacant lots.

“The selling side of vehicles has been more difficult because this global chip shortage has made it harder for Ford to get new vehicles to us,” Strebe said.

Bornemeier said several manufacturers are feeling the same impact from the lack of computer chips, along with other supply chain disruptions.

“Manufacturers have a harder time releasing as many cars than they normally would,” he said. “If you had to drive, you would probably notice a lot less new vehicles on most dealership lots. “

Strebe and Bornemeier said they expect stocks to gradually increase the rest of the year.

“There should be an increase in production from stocks,” Bornemeier said. “We are able to order more cars from Honda now than we have been in the past two months.”



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