What Caused the New Car Inventory Shortage?

2022 GMC Acadia parked

If you’ve been car shopping around Minneapolis and St. Paul, you may have noticed that the lots have looked a little bare lately. That’s because there has been an ongoing new car inventory shortage, drastically limiting the number of vehicles shipped to dealerships across the country. What caused the car inventory shortage and how does it affect you? Find out with White Bear Lake Superstore, your local dealership in White Bear Lake.



When Did the Car Inventory Shortage Begin?

The COVID-19 pandemic caused major supply chain disruptions in nearly every industry, and the automotive industry was no exception. Several factors contributed to the car inventory shortage, including:

  • Demand: During the height of the lockdown period, many workers found themselves at home with nowhere to go. That mean less demand for new cars, and fewer cars produced.
  • Surge: Because customers delayed car purchases during the lockdown, after the quarantine period was lifted, demand for new cars suddenly surged – but supply was still low.
  • Manufacturing: Many components that go into cars were also in very short supply, due to issues with shipping and production – including one important element we’ll discuss next.

What is the Automotive Chip Shortage?

The automotive chip shortage was a huge contributor to the new car inventory shortage. Semiconductor chips are used in virtually every electronic on the planet, from cars to washing machines to microwave ovens. These chips are only produced in a few facilities, because they require an extremely specialized environment with highly skilled workers. And because there are no substitutions, the semiconductor chip shortage brought many industries to a bottleneck.

What Can I Do About the New Car Inventory Shortage?

If the car inventory shortage has got you down, no need to worry. There are several options to consider if you need to upgrade your vehicle.

  • Buy Used: Used cars offer major convenience. Not only can you pick up a used car immediately, but you’ll pay a lot less than the new counterpart. Plus, you can explore a diverse inventory including Certified Pre-Owned models, low-mileage models, and and models priced under 10k.
  • Buy Custom: If you’re going to wait for a new car, you might as well make it count. Consider making a custom order from the factory with all of the features that you want and enjoy a vehicle built just for you.
  • Wait It Out: Though there’s still a car inventory shortage and automotive chip shortage, these things don’t last forever. Many Twin Cities customers choose to lease during this time, so they can wait to purchase when the market stabilizes.

Find Your Next Car at White Bear Lake Superstore

Ready to test drive a few models at our White Bear Lake showroom? Feel free to stop by White Bear Lake Superstore with any questions about our new and used vehicles. You can also contact us online with your questions or start shopping virtually with our Shop Click Drive option.


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3880 Hwy 61 N 3900 Hwy 61 N, White Bear Lake, MN, 55110
White Bear Lake Superstore 45.05818, -93.02725.