With new and used car prices skyrocketing due to bottlenecksYou may want to reconsider your plans to buy a car and try again later – at least until the end of summer or when supplies pick up again. Otherwise, you will really have to do the research to get a good deal as you face higher prices and fewer choices.
Car shortages have pushed prices up
Factory shutdowns at the beginning of the pandemic resulted in a shortage of microchips, slowing production of new cars and a reduction in inventory levels 64% at dealers across the countrycompared to a year ago. You may also have noticed fewer cars on dealer lots – the average number of new cars on the lots is trending towards the low 30s and well below historical norms of at least 60, according to Cox Automotive. According to the Kelley Blue BookThe average list price for vehicles in April was $ 39,833, a 7.9% increase over comparable 2019 numbers.
The bottlenecks in connection with the increased demand have also had an impact on the used car market: the average price is loud CarGurus’ price indexThat’s a 27% increase from last May (pickups are the most in demand, prices are up 40.6%).
Hold back on buying a vehicle now unless you really need one
As Matt DeLorenzo, Senior Editor for Kelley Blue Book, explained::
Simply put, you can’t buy what isn’t there. At this point, buyers who can wait to buy a car should probably do so, but shopping smart is more important than ever for those who can’t afford to wait.
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But how long do these prices last? Nobody knows for sure-Car company Expect the shortage to worsen over the summer. After that, supply is expected to pick up again. Even so, some manufacturers suggest a longer time span, maybe up to Early 2023. Of course, predicting future prices is not easy either – but it is reasonable to assume that shortage will drive prices up and that shortage will not last forever.
Either way, you should get a deal when the time is right for you based on your circumstances (some people don’t mind spending too much, and that’s fine, too). Just make sure you consider your options: if you already lease a car, for example, you can extend the lease if you are already happy with the car as you can secure your current monthly rate while you have more time to buy the car Assess the market. And trade-in your current car is another option as well, as the price of a new car could be worth it if you take advantage of inflated used car prices.
When you buy, do your research
Before you buy, do some research on websites such as Autotrader, KBB, Cars.com, CarGurus.com, and TrueCaras they give you a strong idea of where the market is. Per KiplingerThese websites offer algorithmically derived marks or labels such as “Great Deal” or “Overpriced”. In addition, most websites have nationwide offers. So consider expanding your search to other states. If you can find a quote on a vehicle hundreds of miles away, you might save money to spend a few hundred extra dollars on the flight to a dealer and drive it home (like some people do).
For more advice, Read this Jalopnik post. In addition, Clark.com has some great tips The best times of the day, week, and month to buy a carwhat is worth visiting.
