How the car crunch continues to impact relocation

Last summer, Plus VP of Consulting Services Chris Pardo summed up the current state of the automobile industry very succinctly, calling it a “Carpocalypse.”

A few issues were and continue to be in play. First, an ongoing semiconductor chip shortage is making it harder for auto makers to pump out new vehicles, and the result has been longer waits for people looking to buy new cars and higher prices on used cars.

Second, supply chain challenges and delivery driver shortages are making it trickier for someone to ship their car during a relocation, with many resources tied up trying to get new vehicles out to consumers.

As the New York Times reports in the article below, the crisis isn’t showing any signs of ending soon, as it will take time for chip production to catch up with demand and for tangled shipping lanes to clear up. What does this all mean for the mobility industry? For starters, those needing to secure a rental car should considering making it one of the first things they do when planning a move, as Chris noted over the summer. Many rental car companies sold off inventory when travel waned early in the pandemic and are now struggling to get new vehicles just like many consumers.

On the car shipment side, it’s probably wise to continue planning for longer delivery windows and elevated rates, particularly as the holiday shipping season kicks into gear.