The looming work stoppage by dockworkers along the East and Gulf coasts could hit car dealerships hard.
A long port strike would delay new car shipments. This would drive up prices for buyers and make cars harder to get. Repairing existing vehicles would also become difficult due to part shortages.
The International Longshoremen's Association, representing 45,000 dockworkers, is negotiating for a new contract. They’ve warned of a strike if no deal is reached by October 1.
"If a person has a repair or recall, I would make the appointment and get down there today if possible."
Tom Maoli, owner of Celebrity Motor Car Co. in New Jersey, said pre-pandemic inventory lasted three to six months. Now, it’s down to 30-45 days.
"We are going to burn through the inventory in one month," Maoli warned if the ports shut down.
Brian Moody, Autotrader's executive editor, noted that even U.S.-made cars depend on overseas parts. Even if 95% of the car is American-made, missing parts will delay repairs or sales.
Auto dealers may turn to used cars to compensate for the lack of new vehicles. But, with lower inventory, prices for both new and used cars will rise.
The strike will make it harder to get parts for repairs. "If you're holding off on buying, you need to repair," Maoli said. "And if parts aren't available, there's nothing you can do."
A prolonged strike could lead to 30-90 day delays for essential parts.
"Even reliable cars have parts that wear out," Moody pointed out. That’s just normal wear and tear—things like tires and brakes don’t last forever.
Maoli is stocking up on parts, but so is everyone else. "The supplies are going to drain very quickly," he said.
Moody urged car owners to act fast. "If you need a repair or recall, get down there today if possible."