Local Cadillac dealer has no cars to sell

[bdgan]

The lot has about 20 certified preowned cars for sale but no new cars.
I was told that it is because the chip shortage has completely halted production.

I drove by the Jaguar dealership on my way home from the Cadillac dealer and their lot was full of cars. It also looked like the Honda dealer had plenty of cars. I'm not sure why it would be different for Cadillac.

 

[LionJim]

In some not totally related news, it’s hard to find rental cars.

 

[psuro]

In some not totally related news, it’s hard to find rental cars.

I reserved a car in Charleston in a couple of weeks - hope it's still available for me.

 

[Sullivan]

In some not totally related news, it’s hard to find rental cars.

It's probably related. The car rental places don't want to pay top dollar for new cars.

 

[Woodpecker]

I reserved a car in Charleston in a couple of weeks - hope it's still available for me.

 

[Tom McAndrew]

In some not totally related news, it’s hard to find rental cars.

there was a report on NPR (can't recall if it was one of their news programs, or another program) that when travel basically stopped, rental car companies didn't want to be stuck with a large inventory sitting idle, so they sold off their cars. The result has been a crazy rental car market, especially in places where some people moved to work-at-home during the quarantine. They indicated that in Hawaii, rental companies were charging @ $800 a day for smaller cars, as they had almost no inventory. As a result, some consumers had taken to renting small moving vans, as they were available for a cheaper price than were rental cars.

 

[LionJim]

there was a report on NPR (can't recall if it was one of their news programs, or another program) that when travel basically stopped, rental car companies didn't want to be stuck with a large inventory sitting idle, so they sold off their cars. The result has been a crazy rental car market, especially in places where some people moved to work-at-home during the quarantine. They indicated that in Hawaii, rental companies were charging @ $800 a day for smaller cars, as they had almost no inventory. As a result, some consumers had taken to renting small moving vans, as they were available for a cheaper price than were rental cars.

Yes, this is what informed my post in this thread.

 

[Lion Son/Husband/Father]

4 days in Bourne mid July, $600 DAMN

 

[Chickenman Testa]

4 days in Bourne mid July, $600 DAMN

7 days in the Dakotas - $830. Easily double the cost. Glad I reserved 2 months early

 

[Lion Son/Husband/Father]

Airport limo $200 round trip. Hmmmm

 

[CF LION]

there was a report on NPR (can't recall if it was one of their news programs, or another program) that when travel basically stopped, rental car companies didn't want to be stuck with a large inventory sitting idle, so they sold off their cars. The result has been a crazy rental car market, especially in places where some people moved to work-at-home during the quarantine. They indicated that in Hawaii, rental companies were charging @ $800 a day for smaller cars, as they had almost no inventory. As a result, some consumers had taken to renting small moving vans, as they were available for a cheaper price than were rental cars.

I travel to SW Florida bi-weekly, home to the Hertz HQ. Last spring just after things shut down due to Covid, Hertz stored 1000's of cars on a grass lot near the Fort Myers Airport. Spring is the dry season in SW FL. On a particularly hot, dry day, the grass caught fire and spread, destroying 3500 cars. I've pretty much given up on renting cars when I'm there and I use Uber or catch a ride with a local co-worker. Hoping things improve in the summer when the peak tourist and snowbird season is over.

 

[Cletus11]

raw material and supply issues on a ton of stuff not just cars. the deep freeze down south in Texas and Louisiana screwed up the refinery and petro-chemical plants so since they feed a lot of plastic manufacturing, the plastic and fiberglass supply is at issue right now. Steel pricing is going through the roof and is starting to become not available. massive worldwide shipping issues with container ships all over the place and things that used to take 2-3 weeks are now 2-3 months to ship. I think a lot of these issues are only going to get worse over the next couple of months and we are not going to get some of these logjams undone until early next year.

 

[PSUQBKeeper]

there was a report on NPR (can't recall if it was one of their news programs, or another program) that when travel basically stopped, rental car companies didn't want to be stuck with a large inventory sitting idle, so they sold off their cars. The result has been a crazy rental car market, especially in places where some people moved to work-at-home during the quarantine. They indicated that in Hawaii, rental companies were charging @ $800 a day for smaller cars, as they had almost no inventory. As a result, some consumers had taken to renting small moving vans, as they were available for a cheaper price than were rental cars.

hell you could maybe buy a beater and then sell it again when you were done using it

 

[PSU Mike]

hell you could maybe buy a beater and then sell it again when you were done using it

How much would one like @BobPSU92 go for?

 

[psudsl08]

60 Minutes did a piece on this, basically US only produces 12% of chips compared to mid 30% a decade or so ago. Intel CEO was optimistic that they could get caught up in 2-3 months, as they're investing investing about 20B in new production facilities in AZ. Intel still doesn't have the capability of producing the high end chips for iPhones which are currently produced in Taiwan.

 

[LionJim]

I think a lot of these issues are only going to get worse over the next couple of months and we are not going to get some of these logjams undone until early next year.

I appreciate this thorough response. Care to elaborate on this last part?

 

[Cletus11]

60 Minutes did a piece on this, basically US only produces 12% of chips compared to mid 30% a decade or so ago. Intel CEO was optimistic that they could get caught up in 2-3 months, as they're investing investing about 20B in new production facilities in AZ. Intel still doesn't have the capability of producing the high end chips for iPhones which are currently produced in Taiwan.

2-3 months i think you mean years. It takes at least 36 months to build a greenfield chip factory. this is more a long term play for USA to get back to being a major player which is a good thing.

 

[bdgan]

I travel to SW Florida bi-weekly, home to the Hertz HQ. Last spring just after things shut down due to Covid, Hertz stored 1000's of cars on a grass lot near the Fort Myers Airport. Spring is the dry season in SW FL. On a particularly hot, dry day, the grass caught fire and spread, destroying 3500 cars. I've pretty much given up on renting cars when I'm there and I use Uber or catch a ride with a local co-worker. Hoping things improve in the summer when the peak tourist and snowbird season is over.

I remember that. Some people wondered if it was arson. I think Hertz declared bankruptcy soon after that.

Of course travel to SW Florida has almost completely recovered. It seems like there would be demand to replace those 3,500 cars.

 

[Bessmoney]

When COVID hit, car companies cancelled their chip orders. Gaming companies swooped in and bought the excess capacity. Now the car companies want back in and there's no capacity for them. Chickens have landed.

 

[Obliviax]

In some not totally related news, it’s hard to find rental cars.

IMHO, it is because the rental companies downsized due to the pandemic. Today, there is an explosion of travelers again. Spring break was nuts in many locations. Rental companies can't find people to work as many have to stay with school-at-home kids, can make more money staying home or are afraid to go out of the home.

I rented in SFO three weeks ago and there were 50 people in line waiting to pick up their cars. There were cars, just two people working the outgoing and incoming process.

 

[BBrown]

The lot has about 20 certified preowned cars for sale but no new cars.

I was told that it is because the chip shortage has completely halted production.

Over the weekend I was talking to one of my neighbors, he's a new car salesman for Chevy. He said that used cars are very difficult to find right now and that Carmax is buying up everything at the auctions.
He went on to say that new cars are going for as much as 15% above sticker and stock is really limited.
He said he had a customer call him on the phone and offer 3,000 over sticker and all cash.
Then last night I saw a NBC news story about the lack of used cars and how they are in high demand.
I also drive past a used Toyota and Jeep lot on the way to work and they have been mostly empty since March.

 

[BBrown]

I reserved a car in Charleston in a couple of weeks - hope it's still available for me.

Same for me at the Vegas airport.

 

[The Spin Meister]

This economy....and therefore all of us....is in a very strange and scary place. Shortages of just about everything. Prices skyrocketing. Shipping of what is available screwed up. People will start hoarding again very soon. Scary times acomin’.

 

[Thomas1945]

View embedded media

I know it’s happened to others, but every time I see this bit I want to sue Seinfeld and David. Once at the Hertz counter in the LA airport, if you had a recorder, that scene was word for word verbatim of my incident. Hertz eventually found me a car, but it’s so exhausting having to deal with this after a day of dealing with the usual clusterf&&ks of traveling.

Another time a Hyatt Regency rented my room despite me having a reservation and then said they were sold out. And I arrived at around 6:00 pm, so why the panic on their part? I was so pissed I went into the lobby where there was a piano player, took off my suit coat, shirt, shoes and socks and stretched out on a couch. Instead of being arrested, the manager appeared with a pass key to a magically found room. It was a two bedroom suite, gratis for the night. Sometimes it pays to be a little off kilter.

 

[lazydave841]

Funny how the supply is "extremely low" while the demand is rising. You can have less headache managing half the assets and offering them at double price with less people doing the work.

 

[Obliviax]

I know it’s happened to others, but every time I see this bit I want to sue Seinfeld and David. Once at the Hertz counter in the LA airport, if you had a recorder, that scene was word for word verbatim of my incident. Hertz eventually found me a car, but it’s so exhausting having to deal with this after a day of dealing with the usual clusterf&&ks of traveling.

Another time a Hyatt Regency rented my room despite me having a reservation and then said they were sold out. And I arrived at around 6:00 pm, so why the panic on their part? I was so pissed I went into the lobby where there was a piano player, took off my suit coat, shirt, shoes and socks and stretched out on a couch. Instead of being arrested, the manager appeared with a pass key to a magically found room. It was a two bedroom suite, gratis for the night. Sometimes it pays to be a little off kilter.

I had a similar experience on a new years eve. I checked in only to find they were sold out. I called the Holiday Inn national number (it was an HI). They explained to me that most hotels are franchises and that they pay a booking fee back to the brand. On nights like NYE, they will often turn away booked rooms through the brand to take local bookings booked directly because they don't have to pay the booking fee. HI called the hotel owner and told them to knock it off and get me a room. That was fun.

 

[SLUPSU]

Over the weekend I was talking to one of my neighbors, he's a new car salesman for Chevy. He said that used cars are very difficult to find right now and that Carmax is buying up everything at the auctions.
He went on to say that new cars are going for as much as 15% above sticker and stock is really limited.
He said he had a customer call him on the phone and offer 3,000 over sticker and all cash.
Then last night I saw a NBC news story about the lack of used cars and how they are in high demand.
I also drive past a used Toyota and Jeep lot on the way to work and they have been mostly empty since March.

Based on what Carvana is offering me for my truck, values have been appropriately spiking also. They will pay me $28,900 for my 2014 Silverado with ~75k miles, a truck I paid $38k for in late 2013. This is about 7k more than I would have received before the pandemic. I have been updating these offers for a few months now, they started at ~$26k just 3 months ago.

 

[Thomas1945]

Based on what Carvana is offering me for my truck, values have been appropriately spiking also. They will pay me $28,900 for my 2014 Silverado with ~75k miles, a truck I paid $38k for in late 2013. This is about 7k more than I would have received before the pandemic. I have been updating these offers for a few months now, they started at ~$26k just 3 months ago.

When the Carvana offer reaches $38k sell before the bubble bursts, and then buy a Vespa scooter. As gas prices rise you maybe able to trade in the Vespa and get a new Silverado in an even up swap. Coronavirus and the Law of unintended consequences.

 

[LionJim]

This economy....and therefore all of us....is in a very strange and scary place. Shortages of just about everything. Prices skyrocketing. Shipping of what is available screwed up. People will start hoarding again very soon. Scary times acomin’.

Yes, it’s going to be a challenge. I am confident that there are entrepreneurs out there who will address it. When there is money to be made, money gets made. Takes time, though.

I am rotten glad that I am 64 this year. Fifty years, eighty years down the road it’s not going to be pretty. No way our infrastructure will be in any way adequate for what is required.

 

[ClarkstonMark]

The chip shortage is a serious issue affecting the auto industry, but there is no excuse for the Cadillac dealer to have no inventory - that is on the dealership.
There are Cadillacs sitting on dealer lots all over the country.

 

[PAgeologist]

How much would one like @BobPSU92 go for?

No way anything beaten that much will work right.

 

[bison13]

The chip shortage is a serious issue affecting the auto industry, but there is no excuse for the Cadillac dealer to have no inventory - that is on the dealership.
There are Cadillacs sitting on dealer lots all over the country.

Everyone used their stimmy to get an escalade......

 

[lionville]

Get ready for gas shortages this summer. The reason being the lack of certified tanker truck drivers. When the pandemic hit and demand for gas dropped, a lot of drivers moved over to drive commercial trucks and they are not coming back.

 

[Cincinnati Kid]

Over the weekend I was talking to one of my neighbors, he's a new car salesman for Chevy. He said that used cars are very difficult to find right now and that Carmax is buying up everything at the auctions.
He went on to say that new cars are going for as much as 15% above sticker and stock is really limited.
He said he had a customer call him on the phone and offer 3,000 over sticker and all cash.
Then last night I saw a NBC news story about the lack of used cars and how they are in high demand.
I also drive past a used Toyota and Jeep lot on the way to work and they have been mostly empty since March.

Just purchased a new Toyota for my wife. Negotiated a price 5% below the sticker price. The car was manufactured in Princeton, IN last Friday and shipped to the dealer on Monday. Pretty amazing!

 

[Cincinnati Kid]

The lot has about 20 certified preowned cars for sale but no new cars.
I was told that it is because the chip shortage has completely halted production.

I drove by the Jaguar dealership on my way home from the Cadillac dealer and their lot was full of cars. It also looked like the Honda dealer had plenty of cars. I'm not sure why it would be different for Cadillac.

Just saw on the local news last night that Ford has parked well over 1000 new F-150’s at the KY Motor Speedway. They are waiting on chips to be received and installed so they can ship them to the dealerships.

 

[Woodpecker]

Another time a Hyatt Regency rented my room despite me having a reservation and then said they were sold out. And I arrived at around 6:00 pm, so why the panic on their part? I was so pissed I went into the lobby where there was a piano player, took off my suit coat, shirt, shoes and socks and stretched out on a couch. Instead of being arrested, the manager appeared with a pass key to a magically found room. It was a two bedroom suite, gratis for the night. Sometimes it pays to be a little off kilter.

The manager recognized that your bubble bath in the lobby fountain would not play out well.

 

[BobPSU92]

How much would one like @BobPSU92 go for?

I come cheap. 😞

 

[Woodpecker]

I come cheap. 😞

But often!

 

[thewholebit]

I reserved a car in Charleston in a couple of weeks - hope it's still available for me.

You may get something totally different from the class of vehicle you reserved.

 

[fastlax16]

A lot of manufacturers are having supply chain issues. I know Ford dealers barely have any trucks and shut down production for bronco sports this week.

VW calls/emails me 3x a week asking to buy my car. They’ve offered more than I paid for it.

If you have a car you don’t use now is the time to sell it.