How is Car Leasing Impacted By the Inventory Shortage?

Today’s cars implement thousands of semiconductor chips, and the pandemic created a massive vehicle chip shortage, drastically slowing automotive production. As of 2022, the average new car sells for roughly $50,000, thanks to inflation caused by high demand and limited supply. If you’re considering leasing a car near Sarasota, and wondering if now is a good time to lease a car, take a moment to read our overview of how car leasing is impacted by the inventory shortage. Then, apply for pre-approval and contact Cox Chevrolet to take the next step in Bradenton.

Is Now a Good Time to Lease a Car?

So, how is car leasing impacted by the chip shortage? When you lease a car in greater Tampa, you make payments that will cover the amount of value that depreciates over the course of your lease term. The higher the residual value of a car upon lease signing, the more dollars are going to be packed into each percentage of depreciation that occurs.

Since the vehicle chip shortage has created high demand and limited supply, you can expect lease vehicles to have an inflated value and higher monthly payments. However, you may need a car now, and leasing can still be a more affordable option. Here are some considerations:

• Lease Buyouts and Renewals: If you’re currently leasing a vehicle, and you signed the agreement before that inflation his the automotive industry, you can buy out your lease at the value that was originally stipulated, or continue leasing it at the original value.
• Interest Rates: For many leases, inflation is accounted for in higher interest rates on lease agreements. So, if you’re weighing your options between financing and leasing, make sure to factor in estimated lease interest rates, so you can determine which option is truly going to be more affordable.
• Transitory Prices: It’s entirely possible that, as production resumes, prices will go down, so do bear in mind that leasing allows you to ride out the rest of the storm on a temporary contract.

Have Questions About How Car Leasing is Impacted by the Inventory Shortage?

If you have further questions about the vehicle chip shortage or whether now is a good time to lease, call Cox Chevrolet at (941) 251-0310. We’re more than happy to help you identify whether leasing is the best option for you, and should you explore leasing, we’ll ensure you don’t miss out on any opportunities to save. While you’re here, take a moment to explore our guide on what to do if your lease is expiring soon, as well as our guide on the differences between leasing and buying!