Why the car you want to buy might be impossible to find

• If you want to buy a Toyota or a Honda, you might have a hard time finding the car you want.
• That's because those carmakers have fewer cars on their lots.

Some of the most popular car models in the US are difficult to find, as inventory issues continue to plague companies like Toyota and Honda.

Overall, car lots are growing fuller. The auto industry had 53 days' supply of vehicle inventory at the end of April, according to Cox Automotive. That's up 47% from a year ago — a huge improvement, per Cox.

But some auto companies are still lacking vehicles on lots. That's bad news for Toyota customers in particular, as Toyota makes some of the most sought-after cars in the US.

Why are some cars so hard to find?

Part of the problem is the ongoing chip shortage.

Automakers like Toyota "specifically called out the continuing chip shortage as a rationale for production losses going forward in 2023," Sam Fiorani, VP of global vehicle forecasting at AutoForecast Solutions, said in a recent note about chip impacts.

Toyota, Kia, and Honda were sitting on less than 30 days' supply in April. That's about 23 days less than the average across the industry (and the lower the number, the scarcer the supply).

The scarcity of those brands is partially a reflection of demand. Toyota and Honda, especially, have struggled to fill the needs of new customers, as well as those returning after a lease ends, Brian Finkelmeyer, senior director of new car solutions at Cox, told Insider. The two automakers have high brand loyalty and reputations for reliability and quality.

But other inventory hurdles are causing constraints for some models, too. Ford, for example, hit a snag with missing door handles for the popular F-150.

What should a car buyer do?

Many of the domestic brands like Ford, Dodge, Lincoln, Ram, Chrysler, and Buick continue to sit on more and more unsold cars. In general, customers will find it easier to get a discount on cars with higher inventory levels.

But some brands are trying to avoid discounting by limiting how much inventory they give dealers — especially as they prioritize profits over market share. GM, for example, intentionally halted production at a truck plant to maintain its pricing power.

"A higher days' supply is usually an early indicator that you're going to need to bring back incentives and discounting," Finkelmeyer said. "Those brands are probably the most likely brands where consumers are going to begin to find greater cash rebates, special APRs, incentives to spur demand."

Don't wait for your favorite car company to increase inventory and dish out deals, though. Many automakers won't ever go back to a "normal" supply of cars.

And just because a car company has fewer days' supply than another isn't necessarily good or bad — at least for the automaker themselves, Ed Kim, president and chief analyst at automotive research firm AutoPacific, told Insider.

"It's a very, very careful balancing act. They don't want to under produce too much, either," Kim said. "Of course, some automakers are more impacted by supply issues than others. It's hard to make a blanket statement about what a consumer should do with this current situation."

How some of the most popular vehicles in the US are hit by today's inventory crunch

Data: Cox Automotive, as of April 24, 2023