Background: BMW are the German luxury carmaker that was founded all the way back in 1916. Fun fact for ya, this crew actually started out manufacturing engines for planes...but turned to cars after World War I.

What happened: Like most carmakers, BMW has been facing some supply chain shortages of those pesky little microchips (aka the key ingredient in most modern cars' computer systems). But despite tough conditions...BMW reported net profits of $4.4 billion for the three months to September 30.

What else: Things are peachy, no? Well...while earnings were tip top, BMW still saw deliveries fall 12.2%. Compared to Volkswagen's 24% decline, it's not bad....but it still ain't good.

So what's the key learning?

💡With the supply of new cars looking pretty dry, used cars have come in vogue. That's 'cos the desperation for a car has meant people are settling for a second-hand model...which is actually pushing the cost of these models through the roof.

💡As of September, the average cost of a used car is more than US$25,000. And it's all because chip shortage + factory shutdown (TY COVID) = new car shortage.

💡And we're seeing a knock-on effect to leasing businesses, too. In fact, Aussie vehicle leasing company Eclipx saw its annual profit soar as customers extended current leases to avoid having to buy a new car. And they got more bang for their buck once those leases were up due to higher used car prices.