America’s new-car shortage has old-time Soviet feeling
President Ronald Reagan loved to tell jokes about the inefficiencies of Soviet communism. One of his favorites was the one about the man in the U.S.S.R. who went to an automobile dealership to buy a car. “There’s a 10-year delay in the Soviet Union of delivery of an automobile,” Reagan said. “So, this man laid down his money, and then the fella who was in charge said: ‘Okay, come back in 10 years and get your car.’ ”
The man asked: “Morning or afternoon?”
The dealer replied: “Ten years from now, what difference does it make?”
The man said: “Well, the plumber is coming in the morning.”
I was reminded of this story when I saw reports that the United States is experiencing a Sovietstyle new-car shortage. In the first half of the year, dealers received millions fewer cars from carmakers than anticipated thanks to a host of problems — including the historic inflation the Biden administration unleashed that is dramatically raising supply costs, a record labor shortage that has left auto manufacturers struggling to find workers, supply chain disruptions that have left tens of thousands of unfinished cars sitting around in factory lots waiting for parts, as well as an ongoing chip shortage that is holding up automobile production.
The result? Wait times ranging from several months to two years. According to the auto-sales website YAA, the wait time for a new Subaru is 3-5 months, the wait time for new Honda vehicles is four to six months, and the wait time for a Hyundai IONIQ 5 is eight to 12 months. Ford’s combustion-engine vehicles are seeing wait times of four to six months, but you’ll have to wait between six and eight months for an electric Ford Mustang Mach-E and at least one year for the Ford F-150 Lightning. Wait times for the Toyota RAV4 Prime and Prius Prime, as well as many KIA electric vehicles, are between 18 months and two years.
Not only are manufacturers facing production delays, they are also experiencing quality control issues. The quality of vehicles sold in the United States fell to a 36year low this year, according to automotive consultant J.D. Power. (Owners of electric and plug-in hybrid vehicles cited more problems than owners of internal combustion engine models.) Moreover, thanks to the chip shortage, many new cars are being built without such advanced features as touch screens, hands-free driver assistance technology, rear access systems, wireless charging, HD radio, navigation systems, heated seats and steering wheels, and fuel-saving stop-start technology. So don’t be surprised when your new car drives a little more like the Soviet Lada or Volga the man was buying in Reagan’s story.
As supply shrinks, prices skyrocket. The average price of a new vehicle reached $48,043 in June, the highest on record. And because of the shortage, customers are paying well over list price for new vehicles. The average sales price of a new vehicle is averaging 10 percent above manufacturer’s suggested retail price (MSRP). So, not only will you wait for months or years for your new car, you’re going to pay record-high prices for the privilege.
And when you finally get your new car, be sure to check for rodent damage. Some manufacturers have left unfinished vehicles sitting around for months at a time in open fields waiting for parts — perfect conditions for rats and mice, who like to climb inside and gnaw on the internal wiring. (They seem to be especially attracted to soy-based wiring insulation that has replaced petroleum-based products.) So don’t be surprised if your “check engine” light comes on soon after leaving the lot.
Incidentally, Americans are also experiencing a shortage of home appliances, with long wait times for delivery and installation of items such as dishwashers.
So, when you go to buy a new car in Joe Biden’s America, and the dealer tells you to come back in one or two years to pick it up, don’t forget to ask: Morning or afternoon?
Because the plumber could be coming in the morning.