EDEN PRAIRIE, Minn. — Labor Day weekend is usually a busy time for car dealers, but with the chip shortage you'll have a hard time finding deals, or cars for that matter.
At Midwest Auto Sales in Eden Prairie cars don't stick around very long.
"We're turning our inventory faster than we ever did before,” inventory buyer Ric Fohrman says.
The company specializes in used, and these days used is what everyone wants.
"There are certainly fewer new cars on dealer lots across the country, actually globally,” Fohrman says.
The competition for used cars has increased significantly in recent months.
With the low inventory of new cars several dealers are now looking to fill their lots with used cars.
Fohrman says the rental car companies are also joining in.
“They have fewer cars in stock, so they’re buying up late model used cars to put into their rental fleets,” Fohrman says.
So, if you go car shopping this holiday weekend, Fohrman says you might be surprised when you find out how much your used vehicle is worth.
“That will help offset the higher price they might pay for their new car,” Fohrman says.
“You’re not going to see the kinds of discounts on new cars that we’ve traditionally seen. There are fewer rebates and fewer pushes to get rid of stock, because there isn’t a lot of stock to sell.”
Scott Lambert with the Minnesota Automobile Dealers Association says this Labor Day weekend will definitely look different than years past.
“I’m not seeing a lot of local dealerships advertising right now, probably because they don’t need to,” Lambert says.
But he says there are still cars out there if you shop around.
"If you don't see it on the lot, don't despair. Dealers often shop other dealerships' lots. It's very common in the business and they might be able to find what you’re looking for,” Lambert says.
And if you can't find what you're looking for, Fohrman says try not to get caught up in the craziness of this shortage and make a decision you'll regret later.
"Definitely don't freak out. Don't panic. Definitely don't buy something you don't want to have and don't let anybody rush your process,” Fohrman says.
The Minnesota Automobile Dealers Association says the inventory of new cars will likely stay low for several months.
They don't expect it to pick up until this winter, at the earliest.