In 2020, the automotive industry was hit by shortages. Supply chains were disrupted worldwide due to the pandemic and other issues. Auto manufacturing and repair are still dealing with the challenge of procuring parts. A global microchip shortage is causing huge problems for companies like GM. [1] Auto body shops have seen a boom in business that’s due, in part, to the shortage of new cars.
When new cars became scarce, the demand for used cars went up. Prices of these used cars increased. Many people who would normally be looking for a new ride decided to invest in maintaining or repairing their current vehicle, instead.[2] This, combined with continued supply chain issues, has led to parts shortages. So while many auto body shops have seen an uptick in businesses, they’re also dealing with increased costs.
Many experts believe that the microchip shortage could last for at least another year.[3] This means that everyone in the auto industry will need to adapt over the next year to 18 months. For auto body shops, that could mean finding ways to cut some costs. At Alliance Leasing, we’re able to help many small and mid-sized businesses do just that.
One reason for this is that our financing is different. For example, we make it possible for our clients to finance used equipment in good condition.[4] This can mean huge savings right up front. Most financial institutions will only finance new equipment. We also have flexible payment plans, including a 60/90 day deferred option.[4] We are even able to offer working capital to our clients. That means that we provide them with cash to be used for things like supplies or expansion.[4]
We’ve been in business for over 30 years. And during that time, we’ve helped plenty of businesses in the automotive repair space. We understand the challenges you’re facing during this time, and we’d love to help you. Contact us today. Let us know what you need. Chances are, we can help you.
[1] https://www.autonews.com/retail/gm-works-hertz-get-dealers-more-loaner-cars-amid-chip-shortage
[3] https:///www.cnbc.com/amp/2021/05/12/the-global-chip-shortage-could-last-until-2023.html
[4]https://www.allianceleasing.net/equipment-leasing/