Vehicle available for Leasing from Fleetsauce in Wrexham

How to avoid the car shortage problem

How to avoid the car shortage problem

(Posted on 08/07/21)

A global shortage of microchips is affecting vehicle delivery times and many new models will not be delivered until 2022.

The shortage has impacted the leasing market, but our team is working around to clock to ensure you can still order lease vehicles. We have introduced new processes to combat the problem and to ensure customers are not left without a vehicle.


Micro chips are used in all cars. If there is technology, microchips are needed. They can be found in technology such as satnavs, speedometers, parking cameras and infotainment systems.

Covid is partly to blame for the shortage. As people began working from home last year, there was a surge in spending on computers, gaming consoles and music systems, all of which use the same microchips. 

Car manufacturers do not usually stockpile the microchips instead ordering on demand, so as consumers snapped up in-home technology, the number of chips depleted.

A fire in one of the largest microchip plants in Japan, which is responsible for supplying the motor industry, and winter storms which forced chip-producing factories in Texas to close, also added to the issue.


We are advising fleet managers to plan and allow extra time for new orders.

There are some stock vehicles available for immediate delivery and our customer service team works closely with our account managers to check the latest availability. This enables a seamless process of finding the best prices on available stock deals and means customers can take delivery sooner.

If there are no stock vehicles to match your needs, do not worry there are still options. We can source short term hire vehicles for you at discounted rates, allowing you to bridge the gap between your next lease vehicle.

Another option is to extend the lease on your current vehicle. We make this process as simple as possible, contacting the relevant funders on your behalf. Lease extensions are subject to individual funders but they are possible.  

Our customer service team provides regular and detailed updates to all our customers for added reassurance.


June’s Society of Motor Manufacturers and Traders’ (SMMT) figures show registrations were up 28% but were down on the 10-year average as the microchip shortage impacted vehicle supply.

However, despite the shortage causing issues now, Mike Hawes, chief executive at the SMMT remains optimistic that the industry will recover.

He said: “With the final phases of the UK’s vaccine rollout well underway and confidence increasing, the automotive sector is now battling against a ‘long Covid’ of vehicle supply challenges.

“The semiconductor shortages arising from Covid-constrained output globally are affecting vehicle production, disrupting supply on certain models, and restricting the automotive recovery. However, rebuilding for the next decade is now well underway with investment in local battery production beginning and a raft of new electrified models in showrooms.

“With the end of domestic restrictions later this month looking more likely, business and consumer optimism should improve further, fuelling increased spending, especially as the industry looks towards September and advanced orders for the next plate change.”


Contact us today to discuss your options.


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