How the Microchip Shortage is Impacting the Motorcycle Industry
You may have already noticed that motorcycle inventories across Miami, the greater South Florida region, and the United States as a whole are constricting faster than you can pop a wheelie. Offers for your used motorcycle may have come pouring in. You may have looked online for new Harley-Davidsons and wondered why the inventories seem so low. One word: microchip.
Or more specifically, a global shortage of semi-conductors. Thousands of these semi-conductors (also known as microchips) are needed to assemble one Harley-Davidson. The shortage of these microchips are a direct result of the COVID-19 pandemic and its forced shutdowns of factories and suppliers. Now that production is slowly starting to rebound, there is a massive backlog of motorcycle and automobile manufacturers looking to get their hands on the technology so they can keep up with demand.
Used Motorcycles Are at a Premium
Typically, higher demand and lower supply produce higher prices. This isn’t great news if you’re looking to buy a motorcycle, but it is if you’re looking to sell your used Harley-Davidson (or any motorcycle brand, really). In fact, this is one of the best times in history to sell your used motorcycle.
Motorcycle dealerships need to keep generating revenue for the company and for the sale steams they employ. If dealerships can’t get enough new product on the showroom floor, the alternative is to try and grow their used motorcycle inventory. And because of the microchip shortage, motorcycle dealerships like Peterson’s Harley-Davidson are offering Miami riders some of the best prices that have ever been seen.
But how did the COVID-19 pandemic cause this shortage exactly? Starting in 2020, the pandemic completely upended the market and global economy. People drove less since they were working from home and thus, people were buying less. This caused motorcycle manufacturers to cancel their semiconductor (microchip) orders to suppliers. As soon as the demand started to increase, those manufacturers were pushed to the end of the line. And factories have not been able to keep up with the sudden burst of microchip demands.
The microchip shortage for the motorcycle industry is expected to continue into 2022 or even 2023. Though it sounds ominous, the good news is that demand continues to climb for motorcycles, which is a welcome thought for motorcycle manufacturers and dealerships like Peterson’s Harley-Davidson. However, inventory is needed on motorcycle dealership lots to leverage the demand.
Ultimately, this is all great news for those wanting or considering selling their motorcycles. Peterson’s Harley-Davidson is offering the best prices in its history to Miami and South Florida motorcycle riders looking to sell their bikes. And before you ask yourself “I’ve sold my Harley-Davidson for great money, but how can I get a new bike with these prices?” Peterson’s Harley-Davidson makes it easy to trade in your used motorcycle for a new one.
In-house financing with competitive rates and terms that fit your budget are readily available. Free insurance quotes tailored for motorcycles are also offered by the Peterson’s Harley-Davidson sales team. And to keep you completely covered, Peterson’s Harley-Davidson offers other financial products and benefits such as GAP coverage, payment protection, extended warranties, and preferred maintenance plans. Sell your used motorcycle today and let us arrange credit financing with a minimum down payment (and approved credit) so you can get the best deal for your current motorcycle and ride off into the Miami sunset with a brand-new Harley-Davidson® .
If you’re ready or just thinking about selling your motorcycle, click here for a free no-obligation quote. You can also stop by our Harley-Davidson dealership in Miami (Miami Gardens) and our South Miami location (Cutler Bay).