Chip price, going up.

[longfiredragon]

Hey all, just an FYI. Saw on the news this morning the chips manufactured out of Taiwan are going up in price. As most of you probably know they are the largest chip MFG in the world for new vehicles, not just jeeps. They of course didn't say how much.

Point, I have heard the 2022 jeep/ wrangler prices are going up, now so are the chips. So who knows what the 2022 prices are going to be like. If your wanting a new vehicle, hopefully it's a jeep but whatever it is you might want to try for a 2021.

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[SH556JL]

So you’re saying us current Jeep owners will see an increase in value? Nice! My parents said my Jeep would be a terrible investment… Says the ones without a retirement.

 

[LarryB]

I am a nerd in this space … the chip shortage is widespread, but it is only one culprit in the list of issues. A shortage of containers / port workers in Asia, as well as many COVID outbreaks in other parts. I would sit tight, this may get a bit worse before it gets better.

 

[FloridaLarry]

China will either invade Taiwan or covertly support a pro-China government sometime in the next year. That 'may' effect chip prices too.

 

[ReimundKrohn]

I am involved in the production and sales of Industrial Equipment. That is in fact what I have been doing for 22 years now. 2021 has been a roller coaster like no other: with prices of steel and copper and aluminum and freight and electronics jumping in price monthly. This is absolutely unprecedented in my lifetime, and most people don’t seem to understand exactly where this could be heading.

Manufacturers everywhere, both large and small, are in trouble. With Global markets and JIT manufacturing, companies buy parts and materials on the open market or under supply contracts, contracts that have clauses to cover vendors from selling at a loss.

With the chip manufacturers now talking about a 20% price increase for their semiconductors, expect 2022 prices to climb with them.

Some people are saying now is NOT the time to buy a new or used vehicle, prices have risen too dramatically this year. That would be sage advice… IF this trend were going to reverse itself. Right now, it doesn’t look like it will…. Not for a year or two or three. If you are approaching end of lease, or are reliant on an unreliable automobile, you might want to start investigating your options. That is what I did, in pulling the trigger on my 2021 JLUI. I was able to buy at MSRP, with a few extra perks thrown in, and at a special end of season financing rate. In 2021, I consider that a win… and money well invested.

btw: article re the semiconductor price increase….

https://www.autocar.co.uk/car-news/...d-manufacturing/world’s-largest-semiconductor

 

[Deleted member 59498]

Something related is the fact you can't buy a high end video card without paying far over priced. EVGA cards actually have a wait list of over year. But then you have entire factories, huge factories with nothing but video cards running 24 hours a day mining cryptocurrency. Probably one factory could chip 10000 cars if not more. They are that massive.

 

[DaltonGang]

They have to pay for the all the AZ land they just bought somehow.

Peoples Republic of Arizona?? How much of Arizona did they purchase??

 

[Goin2drt]

I love speculation threads and folks thinking they know the future. There is as good of a chance the prices going up as the prices coming down. People have been paying MSRP and over for their new cars. Even if MSRP goes up when supply catches up the deals will be back. That’s my speculation. Don’t buy now as it is the worst time to time a big purchase. Everything is at a premium. Sell what you don’t need that is worth good money and sock it away.

 

[longfiredragon]

Reimund, you hit the nail on the head, better than i did. I agree, that was the point to my initial post was if you are in the market, are thinking about it and can make it work, yes see if you can swing a deal for MSRP right now. That's why I did as well and I ordered my new jeep and payed MSRP.

Right now some dealers are marking them up because of low inventory already that's is what the first dealer I went to tried to do to me. A coworker just bought a new Hyundai and he had to pay some fee, forget what they are calling it but was over 3K more and they told him it was basically because of COVID and everything it is affecting.

Jump ahead 2 years, we have a handle on this COVID mess and the world is some what returned to it's normal crazy. Do you think price's are going to be lowered back down? IMHO not a chance, once they have gone up they are going to stay there.

 

[sherpaJL]

I need to ask the obvious.
With chips integrated in everything from our military hardware to consumer products, why are they manufactured offshore?

 

[SH556JL]

I need to ask the obvious.
With chips integrated in everything from our military hardware to consumer products, why are they manufactured offshore?

If I had to guess, the mining of materials is extremely dirty and expensive; probably more expensive to mine it cleanly as would be required here. Also raw materials may not be available here. I’m not sure, just speculation.

 

[CrimsonGhost]

I agree, that was the point to my initial post was if you are in the market, are thinking about it and can make it work, yes see if you can swing a deal for MSRP right now. That's why I did as well and I ordered my new jeep and payed MSRP.

MSRP? Friends don't let friends pay MSRP!

 

[aldo98229]

Damn, the price of avocados went up, too.

My guacamole just got more expensive...!

 

[SH556JL]

Damn, the price of avocados went up, too.

My guacamole just got more expensive...!

So has my latte.

 

[BrntWS6]

Yeah, everything's a big damn mess. Lumber has come down but wire is ridiculous.

I am not sure what is coming. But I had enough concern to sell my house and downsize so I could live mortgage free.

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