Shortages and COVID Impacts

(July Updates) Shortages and Continued COVID-19 Impacts to Your Business

The COVID-19 pandemic has had a swift and almost catastrophic impact on local businesses and industries worldwide. However, this impact can still be felt especially hard by the automotive industry.

In addition to the 2020 COVID-19-related closures that brought the industry to its knees, additional unforeseen have contributed to this unprecedented break in the automotive industry’s supply chain.

July 15, 2021 – Average Vehicle Price Increases

Prices for new vehicles have considerably increased compared to previous years due to rising demand and shortages in equipment and labor. This has caused a shortage and price increase in used vehicles as many buyers look for a cheaper solution.

  • As of June 2021, the average listing price for a new vehicle was $40,566.
    • This price is up $200 from the prior week, 5.5% above prices in 2020, and 10.3% above prices in 2019.
       
  • As of June 2021, the average listing price for a used vehicle was $23,786.
    • This price is up nearly $340 from the prior week and 22% above prices in 2020 and 2019.

July 12, 2021 – Labor Shortages and Solutions

As we continue into 2021, many businesses have been hit hard with labor shortages. If your company has seen the effects of these shortages, you know how difficult it can be on your bottom line.

BuyMax wants to help. With our portfolio of preferred vendors, we aim to provide options and discounts to fill your open positions with high-quality professionals.

Vendors:

  • CareerPlug
    Employee Recruitment

    ProPlan for $495/year (normally $2,268/year, that is an upfront 72% savings)
    3% rebate on spend
     
  • CrimCheck
    Background and Drug Testing

    3% rebate on spend
     
  • Sprockets
    Employee Hiring Service

    Exclusive pricing on annual and monthly programs
     
  • HVACEXEC.COM/servicetechs4hire.com
    Staffing, Recruiting and Employee Placement

    6.5% rebate on spend

June 10, 2021 – Midyear Assessment of Continued Shortages

  • Ford and GM have suspended all pool programs until further notice.
  • OEMs have indicated that clients should expect a decrease in incentives in the 2022MY incentive plans.
  • Toyota closed ordering for the Tundra & RAV4.
  • Upfitters are expecting to raise prices for the latter half of 2021 and the beginning of 2022.
     
  • Upfitters are reverting to honoring quotes for 30 days only.
     
  • Telematics device inventory remains low.
     
  • Freightliner will be raising prices mid-year due to unprecedented price increases from their suppliers.

March 29, 2021 – Beginning of the Year Shortages

  • Auto manufacturers, dealerships, and fleet management companies (FMC) have scarce vehicle inventories as their stockpiles have been virtually depleted.
  • Ford, General Motors, Nissan, Toyota, Honda, and Volvo are the latest batch of manufacturers to face the brunt of this global supply chain disruption.
  • Some auto manufacturers are suspending production lines, cherry-picking limited models to produce, or devising creative workarounds, like delaying certain parts’ installation until after a vehicle is built.
  • Analysts suggest that continued shortages of critical auto parts like microchips (consumed by the electronics industry) and seat foam (polypropylene doubling in price), combined with limited shipping containers and jammed ports, could continue to impact both availability and price well into Q3 of 2021.
  • As of March 2021, for every 100 requests made for a vehicle, only five are being executed.

At BuyMax, we are keeping a close eye on shortages and the effect they may have on your business. We will continue to share industry insights as they arise on our blog.

Begin a dialogue with our expert team to see how we might mitigate these industry challenges by contacting us at support@4buymax.com. For additional information on BuyMax’s Fleet Program, visit buymax.com/buymax-services/buymax-fleet.