Unless you’ve managed to live off the grid for the last 2 years, you’re no doubt aware of the global supply shortages that continue to plague our markets. Yes, COVID really turned the world upside down, and one of the main places where it’s had a terrible, rippling effect is the global automobile market.
What’s going on truly defies perception. Dealership lots are devoid of new cars, and consumers are snapping up used cars like they’re going out of style. The reality of the situation can feel rather bleak, and it’s all being driven by a tiny little chip. Yes, a tiny silicon semiconductor chip.
Beyond your everyday commuter cars, domestic muscle cars, and basically everything in between; this global chip shortage has had a drastic effect on the availability of supercars. Yes, the rarified air of supercars is not immune to the effects of a global pandemic, but why?
Let’s dig into just what the heck is really going on.
Supercar Shortage: What Does It All Mean?
Supercars from the leading manufacturers in the world are not exactly produced in massive numbers. At times, even when the world is not under the thumb of an oppressive pandemic, getting supercars into our fleet can be a major challenge.
These bespoke automobiles are often built to order, and they typically enjoy a thriving used market where aficionados buy and sell their supercars. Even without a supercar shortage, the rarity of some vehicles allows them to appreciate, not depreciate, in standard markets.
Ah, but this is anything but a standard market. Supercars are not only incredibly difficult to get from the factory, due to supply shortages at the manufacturing level, but the used supercar market is incredibly impacted by shortages.
This all adds up to massive delays coming from the factory, a higher price for new cars, a scarcity of models to choose from, and higher pricing on used supercars.
Silicon Semiconductors & Supercars. Why is there a shortage?
Today’s modern supercar is an advanced machine that has a supercomputer’s worth of data and processing ability, advanced engine management systems, and ridiculous interior entertainment systems. Take away the humble silicon semiconductor chip from the equation, and suddenly the supercar isn’t so super anymore.
But what happened to all the chips?
For many consumers, ignorance is bliss when it comes time to global supply chain issues. This often drab topic, now the source of heated debate, has driven the supercar shortage to a breaking point. Simply put, COVID put a literal halt to the production of vehicles and vehicle components all over the world.
The situation really hasn’t rectified itself much in the past 2 years, with the used car shortage increasing every single month. Now, as consumer demand surges, there just simply aren’t enough components to build vehicles, and therefore not enough vehicles coming out of factories to meet consumer demand. Vehicles that do make it out of the factory are now getting stuck at the ports of America due to labor shortages.
The reality for the global automotive market is that supercars are not the only vehicles being affected here. Everything from fuel-efficient hybrids to basic commuter cars utilizes advanced silicon chips inside their seemingly more modest trappings.
Data also indicates that wealthy aficionados are also buying up cars at a faster rate than ever before. Call it fear, call it hoarding, call it whatever you want; there are just fewer and fewer supercars available for firms like Xtreme Xperience to purchase.
So, we have a global shortage of parts for new cars, a used car market with dwindling inventory, and wealthy buyers who are snapping up supercars for way above market value.
How long will this nonsense last?
How Long Will There Be A Supercar Shortage?
According to industry experts like Mike Jackson, the CEO of AutoNation, consumers should not expect a price correction till the second half of 2022. Others, like CarMax CEO Jim Lyski, indicate that they believe used car pricing will continue to rise throughout 2022 and beyond.
Although this data and information follow consumer-focused cars more closely than supercars, you can expect the supercar market to mirror the used car and new car market similarly.
Interestingly, manufacturers like Volkswagen are allocating their silicone chip resources to their premium, and supercar brands. Lamborghini, now under the umbrella of Volkswagen, indicates they have no supply shortages due to the allocation of resources from Volkswagen.
Don’t Worry! We Have Supercars!
We know this all sounds very bleak but fear not supercar-loving friends.
Although our team of buyers has had an incredibly difficult time finding new supercars to bring into our fleet, often dealing with markups of 10% to 15% or more, we’ve got plenty of supercars to go around for you to experience.
Some launches have been delayed, there’s no doubt about that, but we’re in constant contact with our own aficionados to procure the finest supercars in the world for you to experience.
Here’s the thing, we’re not exactly new to the supercar game and we have an amazing fleet that’s ready to go. Ready to push a Mercedes-Benz AMG GT R? How about the incredible Porsche 718 Cayman GT4? Yeah, we got you covered.
Yes, that’s right, we still have plenty of supercars in our fleet that are built to thrill, and all we need is you to come out and put your nerves to the test.
So, are you ready? We thought so.
See you in the driver’s seat.