Is a chip holding up your new car?

Hearing horror stories about long waits for new vehicles? Unfortunately, for those looking to purchase a new vehicle, it's become the new normal to wait months for your new pride and joy to arrive. But why is this?

We all know that COVID-19 played havoc around the world with supply chains, but even prior to COVID-19 there was a problem lurking at the core of many of our most important electronic devices - a worldwide shortage of semiconductor chips.

Everything from phones to laptops and gaming systems need these chips to operate.

In a vehicle these tiny chips control everything from advanced driver-assistance features to infotainment systems, blind spot monitoring and much more depending on the vehicle and options you are looking for.

The shortage, caused by a wide range of geopolitical factors and a sharp increase in demand that outstripped demand was exacerbated by COVID-19. While the situation is improving, experts don't expect it to resolve until sometime in 2023 at the earliest.
You can learn more here with this in depth McKinsey Report.
European vehicles in particular have been heavily hit as they traditionally lead the way in advanced design features, which means they need more chips. Some European manufacturers have begun reducing the options they offer on certain models just so they can roll vehicles off the production line.

What does this mean to you as a consumer?

Firstly, think about what features you really want in a new car and what's on offer. Is it worth you waiting a few months, or even to next year so you have more choice in vehicles and options?

Secondly, maintain your existing vehicle so it's as efficient and reliable as possible while you make the decision that is right for you. When you have your car serviced with your local Repco Authorised Service centre they'll provide you with a 65 point vehicle inspection that can identify any issues that could cause you problems and the peace of mind of our Nationwide warranty.

Made the decision to buy a new vehicle?

Firstly, think about what features you really want in a new car and what's on offer. Is it worth you waiting a few months, or even to next year so you have more choice in vehicles and options?
Good for you! That new car smell is fantastic. Remember once your new vehicle arrives, your local Repco Authorised Service centre is fully qualified to service all makes and models and maintain your right to a warranty under Australian Consumer Law.

Learn more about your rights here.