Microchips, CarMax, and who's making money? Welcome to another automotive news update. Hello, it's Elizabeth from the HomeworkI team. If you missed the big guy stay tuned to our community page for updates on Kevin's recovery. You're all pouring up prayers and support and it's been tremendous and appreciated. Today's menu includes a microchip shortage update, used car prices, CarMax makes a killing, and new car makers, the winners and losers of 2021. Remember, you can use the cool new chapter feature below to fast forward to exactly the part you're looking for. Let's roll. Here are the latest numbers on the microchip shortage for the North American auto industry. According to auto forecast solutions, in the last week of September 2021, 214,000 new vehicles were cut from production, but in the first week of October, only 9,000 vehicles were cut. Plants have stabilized in the sense that with the current supply chains of microchips and other things, they can make a predicted steady amount of vehicles instead of guessing. This is the fourth quarter of the microchip shortage. The company, AutoForecast Solutions, estimates that the auto industry could lose 10.3 million vehicles from planned production before this is all over. Over the pond, Europe took a much bigger production hit. 77,000 additional vehicles were cut in the first week of October. AutoForecast Solutions. The name sounds nice, but I don't think they gave us any solutions. You gotta love how these consulting agencies make the big bucks, telling everyone, Paul Baddett's gonna be counting up the losses while they make a killing and fizz themselves. Oh, the good old car industry. Oh, well, that's any industry, I guess. So what's the real effect of fewer new vehicles being built besides high prices and demand for vehicles? Dale Pollock, executive VP of Cox and Modif, shared recently that the used car pandemic, hangover, could last for years because of two major pipelines for lightly used cars and trucks, which remain empty. This includes all the unbuilt vehicles that would have been leased for two to three years and returned to the auctions as well as fleet vehicles sold to rental car companies. Pollock says this is downable, 57% from last year as of August. Instead of rental car companies selling their vehicles to auctions, they are showing up and they are buying those suckers. So is now a good time to buy a used car? Typically used car prices have dropped in the back to school time of year to make room for the new models. But in 2021, prices remain at all time highs, boosted by the new vehicle shortages and unfortunately, things out of our control like Hurricane Ida, which car facts estimates to have flooded and damaged as many as 212,000 vehicles. The car market seasonality, you know, when you get better deals on cars in certain seasons, could still be a few years away. And overall, the late model used car shortage is going to be with us for years until we can catch up. CEO Bill Nash of CarMax, which is the largest used vehicle retail in the US, said his inventory is about 30% lower than he wants it to be. But he feels he's in a good market position. Nash reports that his wholesale cost on used vehicles was up an average of $3,000 per unit. They sold 419,000 vehicles in the second quarter of 2021 alone, with a net revenue of $296 million. Case you're wondering, that means that after they paid for the cars themselves, paid the salesman, the employees, and their bills, CarMax itself made an average profit of $705.95 per vehicle. Remember how Kevin teaches that it's fair for dealers to mark up their vehicles $1200 to $1500? Well, that's because that's enough to pay everyone and all the bills. I would say CarMax hit that margin in that set. CarMax bought 364,000 vehicles from consumers in the second quarter alone this year, 59% more than 1.252 last year, and get this. 188,000 of these vehicles were bought through the company's instant appraisal and cash offer tool on their website, which is the biggest feather in their hat. This tool was a joint effort from last year with Edmonds, but CarMax just went ahead and bought Edmonds out this year for $404 million. Hey, if you can't beat them, buy them. So if you trusted Edmonds site in the past, expect Edmonds to now stay in CarMax's praises. I'm curious, did anyone in our audience use this instant cash offer tool and did you get a great price for your vehicle? Comment below if you have a personal experience with CarMax. And if you don't know very much about CarMax, you can check out our video about the five types of used dealerships by clicking on the card link above and selecting it from the list that appears on the side. By the way, CarMax is currently understaffed. So if you're looking for a job, tell them the homework I sent you. I'm guessing they'd be thrilled because you know so much about the car industry already. Well, it's time for the new car manufacturers, winners and losers for the first nine months of 2021, compared to the first nine of last year. These automakers had a higher sales percentage so far this year over last year, same time. It demonstrates which companies plan to head for supply chain issues. They know there are people in the current market and they've either grown or shrunk this year. Sitting at the top is Genesis with 204% growth, Tesla 65% growth, BMW 35, Mazda 34, Hyundai Kia 33, Lexus 31, Audi 31, Volvo 29, Toyota 28, Bioch 27 and a few others. Biggest losers by percentage from this year's sales, compared to last year's sales are Fiat down 41%. Jaguar down 25%. Infinity down 19, Dodge 14, Lincoln 11, Ford 7, Chevy 6, Chrysler 2 and GM brakes even. The top five automakers with the most US vehicle sold in 2021 are Toyota 1.8 million cars. GM 1.7 million, Ford 1.8 million, Stellantis 1.3 million, Honda 1.1 million, Tied with the honorable mention, Hyundai Kia, also 1.1 million. If you compare these two lists, Toyota sold the most units and had a 28% increase. GM came in second, but it did the same as last year. Ford moved plenty of vehicles, but dropped 7% from last year. Stellantis also moved a lot of vehicles, nearly the same as Ford did, but they only grew with 3%. Both Honda and Hyundai put up some big sales numbers and growth. In a case you don't know what Stellantis is, it's a conglomeration of some of the familiar brands like Chrysler, Dodge, Fiat Jeep, Maserati, Ram, and a few lesser-no ones called Opel, Alpha Romeo, Citrion, US automobiles, Fiat professional and Pugeot. Fiat Dodge and Chrysler were all on the loser list while Jeep and Ram were on the winners. Stellantis also encompasses two companies. The first, Leesys was founded in Italy, and it's a medium to long-term vehicle rental company featuring 330,000 vehicles in 12 European countries. Free to move, the other one, operates 400,000 vehicles on the same premise both here in the US and in 169 of the countries. These companies focus on electric vehicles and renting to business clients. For what it's worth or not worth, they're actually 285,000 electric charging ports in Europe. But the price of fuel has been outrageous there for many, many years. So I'm curious how this seemingly manufactured direct to renting business model will do here in the US and if it sticks. All right, if you appreciate our video today, consider giving us that great big thumbs up. And please, always remember to comment on our videos and share them with your family and friends. Comment's really matter because they boost our searchability and lead others to get homework guide content too. The entire homework guide team is here to present you the car buyer and that's what we love to do. Thanks everyone for coming back. We'll see you on our next video. As Kevin always says, you guys rock. I'm the amazing Elizabeth. Gotta go.p.m...