Volvo, now a publicly traded company, vows to go all electric:
We have been wanting two new cars for a while now, but have decided to just fix the ones we have and keep them going for as long as possible to ride out the supply chain issues. The cost of the repairs is far less than what we would be overpaying for new cars right now.
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Each new electric vehicle has about 2,000 computer chips.
cnn.com/2021/12/02/business/inflation-chip-shortage-raimondo/index.html
The CHIPS Act isnât going to help alleviate the chip shortage problem in the auto industry. First of all, building a chip foundry takes a long time and planning. Second, no one is going to build these foundries for older generations of chips that auto industry needs (the latest generation of chips are too expensive for use in cars). Newer cars, especially EVs, need even more chips, so I donât see the problem going away any time soon.
Agree. I tried to share concerns in a post above, but apparently some readers didnât agree.
Ford and other automakers are forming partnerships with chip makers in order to assure adequate supplies when factories resume normal production.
We paid MSRP plus a hefty $2,500 (plus state tax on the $2,500) market adjustment surcharge for a car that was negotiable below MSRP just 2 years ago (of course, we bought a 2022 model, not a 2020). Between supply chain shortages & inflation, we feel comfortable with our purchase since the particular vehicle is rarely available with the turbocharged engine. But, we needed a new vehicle. I understand that those who do not need a new car, truck, or SUV can wait. We couldnât.
Currently, looking for a second new vehicleâpreferably a compact SUV. We will not pay a significant premium above MSRP for the second vehicle, but will consider a modest âdealer handling chargeâ above MSRP to get what we want. The difference is that our first new vehicle purchase had to be suitable for long trips with two retriever hybrids, while the second vehicle (compact SUV) would be for around town & shorter trips.
Important for those considering AWD (all wheel drive) vehicles:
If one tire needs to be replaced on an AWD vehicle, all tires must be replaced at the same time to assure the same tread wear. Otherwise, the new tire will need to be âshavedâ so that the tread wear matches on all 4 tires. If not done, then damage to the AWD system may occur.
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Supply chain issues affects car parts needed for repairs:
Problem with supply of cars isnât limited to chips:
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Interesting findings revealed in article from Sept.24, 2021:
35% willing to pay up to 13% over MSRP
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Iâm definitely in the other 65%. 
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Me too. I had a cracked engine head and wouldâve bought a new car except prices are too high. Patched it up and hope for the best.
Fortunately our mechanic was able to get what we needed.
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Great article from today:
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Car salesman told me tonight that they had seven new cars on the lot yesterday and two were sold. They have 55 more coming by the end of January but they sold 82 in December last year. His IT manager expects the backup to continue through mid-2022.
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As we are still considering buying another new vehicle (compact SUV), we checked with various dealers within a 7 or 8 hour drive. One dealer who preached how unethical & bad for business it was that other dealers are charging a âmarket adjustment premium above MSRPâ had a used car for sale similar to the new 2022 that we purchased a few weeks ago.
Glad to see that this dealer maintained her ethics. This dealer is asking over $3,000 more for a one year old used car with about 15,000 miles than we paid for the new 2022 version that we bought which included a $2,500 market adjustment premium over MSRP.
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Just my opinion of course, but âmarket adjustmentsâ arenât a violation of the dealerâs ethics. Bad business? Maybe.
Iâm sure you know that the âSâ MSRP is âsuggested.â Houses are bid up over list price all the time in a hot market. The seller is under no obligation to sell their home for the list price. And the eventual buyer signs a "market advisoryâ disclosure that states, among many other things, that the buyer may have paid more than the appraised value of the home.
Supply and demand, baby! 
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Maybe the lack of supply of new vehicles will ease the transition to hybrid & electric vehicles as consumers consider a wider variety of options than they would when supplies are normal.
There may be another reason to look at EVs right now. The price of the precious metals used in catalytic converters has skyrocketed (thatâs why thereâre so many thefts of catalytic converters around the country). EVs donât need catalytic converters.
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