How long will the car shortage last?

The severe new car shortage has largely eased by 2024/2025, with inventory recovering, though elevated prices persist due to inflation and supply chain adjustments; used car shortages may last longer, potentially years, while the overall market adapts to new norms, so while the worst is over, supply chain impacts and higher prices could linger.


How long will the auto chip shortage last?

How long will the car chip shortage last? No one really knows. Some are forecasting through the middle of 2022, while others think the beginning of 2023 will see a return to normalcy. What we do know is that despite the car chip shortage, we can still help you find a new car at Toyota of Orlando.

Is there still a car shortage in 2025?

Key Takeaways. New car inventory is rising in October 2025 as economic uncertainty and price hikes lower demand. Toyota and Honda have the tightest supply of new cars. Local car supply data is available for the best negotiation leverage.


Is the car shortage getting better?

The shortage is unlikely to fix itself quickly. Even once supply increases, pent up demand from people who are sitting out replacing their cars now will increase demand for the next few years. The market may soften a bit, but is unlikely to become a buyer's market for some years yet.

What is the cheapest month to buy a new car?

The cheapest months to buy a new car are typically October, November, and especially December, due to year-end model clearances and salespeople/dealerships racing to meet annual quotas, with great deals also found at the end of the first quarter (March/June) and during holiday weekends like Memorial Day. Waiting until the final days of the year offers the most significant discounts as dealers clear out outgoing model years (e.g., 2025s to make way for 2026s). 


How long will the new car shortage last?



What credit score is needed for a $30,000 car?

To qualify for a $30,000 car loan, most lenders prefer to see a credit score of at least 660 to 700. That being said, your credit score is only one part of the equation. Lenders will also consider: Your debt-to-income ratio (how much you owe compared to how much you earn)

What's the slowest month for car dealerships?

Since January is the slowest month for sales, it is much slower for luxury cars to sell. Because of this, it may be more challenging for the most expensive ones to be taken out of your parking lot. To sell out the most expensive ones in your inventory, January is the best time to offer promotional deals to the buyers.

Is it better to buy a car now or wait until 2025?

You should buy a car now (late 2025) for deals on outgoing 2025 models, leveraging year-end incentives and better inventory, or wait until late 2025/early 2026 for aggressive 2026 model-year clearance, but be aware of potential 2026 model year price hikes and expiring EV tax credits by Sept 2025, making late 2025 a sweet spot. Waiting longer risks higher prices and potentially rising interest rates, though new inventory levels are improving. 


Which car brands are in short supply?

Toyota, Lexus Still Short of Cars

At the other end of the scale, Toyota and its Lexus luxury division are nearly as short on supply as they were at the height of COVID-19-related supply chain problems. Honda and Subaru join them on the list of automakers with less than 60 days' worth of cars.

What is the 20/3/8 rule for buying a car?

The 20/3/8 rule is a car-buying guideline from The Money Guy Show, suggesting you put 20% down, finance for no more than 3 years, and keep total monthly car expenses (payment + insurance + gas) to under 8% of your gross income to maintain financial health. This strategy helps you avoid overspending, depreciation, and getting "upside-down" on your loan, ensuring your vehicle supports your budget rather than burdens it.
 

What car brands will be cheaper in 2025?

Here are the 10 cheapest new cars of 2025.
  • 2025 Nissan Versa: $18,330. ...
  • 2025 Hyundai Venue: $21,550. ...
  • 2025 Chevrolet Trax: $21,795. ...
  • 2025 Kia Soul: $21,885. ...
  • 2025 Nissan Sentra: $22,730. ...
  • 2025 Kia K4: $23,165. ...
  • 2025 Hyundai Elantra: $23,220 (tie) ...
  • 2025 Nissan Kicks: $23,220 (tie)


How much commission does a car salesman make on a $30,000 car?

It is just a way for the dealer to ensure he's making money by reducing the sales commission. If the invoice cost of a vehicle, for example, is $30,000, then the normal 5-percent profit would be $1,500 and the 25-percent sales commission on the sale would be $375.

What car is in most demand?

The most popular cars of 2025
  • Toyota RAV4. The Toyota RAV4 continues to dominate the compact SUV segment, as it has in previous years, with over 400,000 units sold in 2025. ...
  • Ford F-150. ...
  • Honda CR-V. ...
  • Chevrolet Silverado. ...
  • Tesla Model Y. ...
  • Hyundai Tucson. ...
  • Subaru Outback.


Will we run out of microchips?

Some chip shortages could remain through 2023 and into 2024, though supply of semiconductors and raw materials will generally improve in the auto sector. The auto sector can expect a strong year in 2023, with global car production up 3%. As semiconductor supply returns, global auto pricing should remain stable.


How many microchips are in a new car?

So, here's the typical range you can expect for a new vehicle rolling off the lot today. On average, you'll find anywhere from 1,000 to 3,000 semiconductor chips in a modern automobile.

Has the chip shortage ended?

But has the chip shortage ended, or just changed? While some markets have recovered, new issues continue to put pressure on the supply chain. By late 2024 and into 2025, many standard chips and commodity components showed signs of recovery: Lead times for common parts dropped from their peak delays.

What cars will be discontinued in 2025?

For the 2025 model year, several popular cars are being discontinued, including iconic models like the Chevrolet Camaro, the reliable Subaru Legacy, the luxury sedan Volvo S60, the sports cars Audi R8 and Porsche 718 Boxster/Cayman, and the midsize Ford Edge, with many brands shifting focus to SUVs and EVs, ending production for sedans like the Chevy Malibu and crossovers like the Cadillac XT4. 


Is there still a long wait for new cars?

If you've been car shopping recently, you've probably heard the same story: long delivery times. And no, it's not just you, the delays we saw back in 2023 are still hanging around in 2025. The global semiconductor shortage, sparked by the Covid-19 pandemic, disrupted the car industry in a big way.

What is the least bought car brand?

The least popular car brand often depends on the survey, but Infiniti and Jeep frequently appear at the bottom for owner satisfaction, with Volkswagen, Nissan, Chrysler, and Mercedes-Benz also ranking low in recent Consumer Reports data due to issues with electronics, value, and overall reliability/enjoyment, though brands like Land Rover, GMC, and Dodge also struggle. 

What should a $30,000 car payment be?

For a $30,000 car, your monthly payment could range from around $500 to over $700, depending heavily on your down payment, loan term (e.g., 60 vs. 48 months), and interest rate (APR), with longer terms and higher rates increasing payments, while a larger down payment (like 20%) lowers them significantly. For example, with a $3k down payment, 5.8% rate, and 60 months, it's about $520; with a good rate on a 4-year loan, it could be $733. 


What not to say to a car salesman?

To avoid giving a car salesman leverage, don't say you need a car, "I love this car," or mention your low credit score; instead, focus negotiations on the total price (not monthly payments), keep your trade-in value secret (get a third-party appraisal), and don't reveal you're paying with cash, as dealers want to make money on financing. Be polite but firm, and act like you're ready to walk away to get the best deal. 

What month is the cheapest to buy a car?

The cheapest months to buy a car are typically December, due to year-end sales goals, and January/February, when dealers clear out old models and face less foot traffic, with late summer (August/September) also being good for trade-ins and new inventory. Shopping at the end of the month or quarter (March, June, September, December) offers great deals as staff try to meet quotas, with December often providing peak holiday incentives and discounts. 

What is the 8% rule when buying a car?

The 20/3/8 rule is a guideline that suggests you put 20% down on a car and repay the loan over three years. Applying the rule correctly will also require your monthly payment and car expenses be 8% or less of your income.


What is the red flag rule for car dealers?

The Red Flags Rule (the Rule), enforced by the Federal Trade Commission (FTC), requires automobile dealers to develop and implement a written identity theft prevention program designed to identify, detect, and respond to warning signs—known as “red flags”—that indicate that a customer or potential customer could be ...

What's the best day of the week to buy a car?

The best days to buy a car are typically Mondays, Tuesdays, or Wednesdays, especially early in the day, because showrooms are less busy, giving you more attention and negotiation time, with Mondays often cited as the top choice for relaxed shopping. For the absolute best deal, combine a quiet weekday with the end of the month, quarter, or year (like late December), when salespeople are eager to hit quotas and clear inventory.