The Supply Chain Impact on the Auto Industry

• The current supply chain issues are affecting more than just new car inventory and used car prices. It's also impacting the repair industry.
• New car dealerships are seeing empty lots, and the prices of used cars are soaring as people turn to them when new cars are unavailable.

Challenges in the Repair Industry

• Repair facilities, both at dealerships and independent garages, are struggling to get vehicles back on the road due to parts shortages.
• Some parts have months-long backlogs, delaying repairs for extended periods.

Example of Repair Delays

• A driver involved in a minor fender bender had to wait over a month for parts to arrive at the repair shop, which affected the timeline for simple repairs.
• Even mechanical and electronic parts are facing sourcing issues, with some shops stating that they’ve never seen it this bad.

Case Study: A 26-Year Veteran’s Experience

• A repair shop manager mentioned a Ford F-150 that sat for four months due to a part being unavailable.
• With rental cars in short supply, many people are struggling to find alternative transportation while their vehicles are off the road.

The Impact of Minor Collisions

• A minor collision or mechanical issue can render your vehicle undriveable for months if parts are unavailable, adding strain on transportation.

The Rental Car Shortage

• Check out your local Enterprise Rent-A-Car for inventory availability. Many locations are experiencing days with zero vehicles in stock, and when vehicles are available, the rental fees have surged.

The Electric Vehicle Shift and Parts Crisis

• As automakers shift focus to electric vehicles, parts for internal combustion engine (ICE) vehicles are becoming even harder to find.
• Manufacturers are no longer developing new gasoline vehicles and are not producing extra parts, worsening the current shortage.

Long-Term Effects on Legacy Vehicles

• The shift away from ICE vehicles means parts production is declining, which could lead to a lasting parts shortage, particularly for older vehicles.
• This could result in scenarios where cars on the road are no longer fixable due to part unavailability.

What This Means for Car Owners

• If you own a vehicle that’s more than a few years old, you may face difficulties finding parts in the future.
• The situation could resemble the past, like in Cuba, where cars were kept running through part scavenging, but with more complex and specialized parts in modern vehicles, interchanging parts may not be an option.

Your Thoughts on the Parts Crisis?

• What do you think about the potential long-term impact of this parts crisis on vehicle usage? Let us know in the comments!

Overview: If your car lease is about to end, here are three options to consider for disposing of the vehicle. Every lease is different, but these general guidelines can help you decide the best choice.

Option 1: Return the Car to the Dealer

• Drop off the keys and walk away if you're under the maximum mileage and there is no major wear or damage.
• Important: You might be walking away from hundreds or thousands of dollars in equity that you didn't know you had—dealers may not always inform you about this.

Option 2: Trade the Car for a New Vehicle

• Caution: Understand the difference between a trade-in and a turn-in.
• Leases offer a fixed price to buy your car at the end of the term, based on projected depreciation.
• What’s changed: Vehicle prices have surged in recent years, and your car may now be worth more than the original buyout price.
• If your car is worth more than the buyout price (e.g., a $30,000 car that’s worth $20,000), you can:
  • Buy it for the lower price and sell it for a profit.
  • Trade it in, but make sure to get the equity applied towards your new car purchase.
• Important: Ensure the dealer applies any equity from your current car towards your new car, or you may lose out on that value.

Option 3: Buy the Car

• Advantages:
  • You get a used car with a known history—no surprises.
  • If you’re over on mileage or there’s damage, it doesn't matter when you buy the car.
  • Buying the car locks in the price, even if the market value is higher.
• Things to Watch Out For:
  • Some leases require you to buy the car before reselling it.
  • Watch for any disposition fees (e.g., $200-$300) that may be included in the contract.
  • Some dealers may try to mark up prices for certification or repairs—check your contract to ensure these fees are not added later.
  • If you buy the car, make sure the title is transferred from the leasing company to your name.

Additional Tips:

• Start the process early—don’t wait until the last minute.
• Consider financing options carefully—dealers may offer higher rates than your bank or credit union.
• Make sure you get the title transferred immediately to avoid future hassle.
• Have questions about your lease turn-in? Leave us a message in the comments. This could be a great way to score a fantastic deal on your car, especially if you're aware of all the options available!

California's Push to Ban Gas-Powered Cars:

• California is looking to phase out the sale of gasoline-powered vehicles, requiring all new vehicles to be electric (EVs).
• Although this law is specific to California, it holds national significance as California represents 15-18% of the automobile market.
• Other states, such as Washington, are also planning to phase out gas-powered cars by 2030, with several more states expected to follow suit.
• As a result, around one-third of the U.S. population will live in states where gasoline vehicles will no longer be sold, and in some cases, even existing gas-powered cars may not be allowed to be registered.

The Challenges of Owning Gas-Powered Cars Post-Legislation:

• If these laws pass, it may become difficult to purchase or maintain gasoline-powered cars due to a lack of available parts and discontinued production.
• Manufacturers may stop producing parts for gas cars as the market shifts towards EVs, and maintaining older gas-powered cars could become challenging.

Rising Electric Vehicle Prices:

• Alongside these laws, EV prices are on the rise. For example, Ford has announced price increases of $6,000-$8,000 for certain EV models due to production cost hikes.

Implications for Consumers and the Industry:

• What does it mean for consumers if electric vehicles become a requirement and gasoline vehicles are phased out?
• Are you ready for an all-electric future? Do you have the capability to charge an EV and the infrastructure to support long-distance driving?

Impact on the Automotive Repair Industry:

• How prepared are automotive repair shops for the transition to EVs? Will traditional repair shops be able to handle the electronic-based repair needs of EVs, or will repairs become restricted to authorized dealers?
• Will third-party repair shops fade away as everything becomes more electronic?

Collision Repair and Dealers:

• Collision repairs for EVs may be more complex, especially when it comes to damage to the battery and floor pan.
• What does the future hold for car dealerships and used car lots? Will used EVs still be practical to buy and sell, especially when the battery warranty expires?

What Are Your Thoughts?

• Share your feedback on the transition to electric vehicles and the new laws changing the automotive industry. What do you think about living with electric-only vehicles, and how do you see the repair and retail sectors evolving?