It's the Worst Time Ever to Buy a Car

Buying a new car is always a holiday. Many people visit car showrooms on weekends to take a closer look at a new vehicle and buy it right away. Previously, such an option would have been every day, but not this year. Even last year, buying a car was as simple as possible. You come to the salon, choose a car, sign a contract, pay, and go on business. But now everything is not like that. First, now is a bad time to buy a car because of the limited selection on the market. Discerning buyers will have to spend a lot of time to find the model they need. It is almost impossible to bargain because the sellers do not agree to drop the price. Now, the dealers will not agree to the deal. According to experts, buying a car is brutally new or used. Now let's explain why this is so.

The number of offers on the market has significantly decreased. At the same time, the demand has increased several times. Discounts and promotions have disappeared because it is trivially unprofitable. Buyers have a somewhat limited choice in buying a car now is brutal new or used. Even if you pay attention to transport with a recommended price from the manufacturer, it is not a fact that you will be able to sign a purchase contract.

First, you should compare the average price of cars. The price of a used vehicle exceeds $25,000, and a new car costs $43,000. In 2019, these indicators were significantly lower. The used car cost $21,000, and the ex-showroom vehicle cost $37,000.

Now is the worst time to buy a car. All experts notice it. Moreover, experts say that dealers, sellers, and buyers are in a difficult situation. Those who offer transport need to create new presentations and sales schemes. Those who buy a car should lower the requirements and inspect the vehicle in detail.

What is the reason for such an increase in the price of cars?

The times of the pandemic should be remembered. During the quarantine, car sales almost stopped due to new rules. Moreover, some insurance companies even returned the money to their clients. However, sales volumes of used cars increased significantly. Since the summer of 2020, transport prices have remained quite attractive.

In those chats, the supply of products was overloaded. Consider the shortage of all products, starting with sports equipment, household items, and appliances. Of course, it was a bad time to buy a car. But to be honest, the car market is brutal because of the shortage of chips and parts.

Usually, the car ends up in the sales center and waits for weeks and months for a new owner. To sell such models, managers set attractive prices. But buying a car now is brutal. New ones rarely stay in the dealership for more than a few weeks. According to research, new vehicles are sold in the first week. After two weeks, the center does not even have half of the assortment.

The same studies show that between 2016 and 2020, cars were sold at a discount of 2,000-2,500 thousand dollars from the original price tag. And is now a bad time to buy a car because you will get a maximum of $100 off the sticker price.

Why is that, you ask? Everything is simple. Car and driver shortage tactics have been created. If you don't buy the car, someone else will. It is not profitable for car dealerships to sell cars at a price lower than the manufacturers.

A limited number of models are available for sale. To be honest, there may be even fewer of them than it seems. Therefore, the salon should earn the maximum amount of money in such conditions.

Tips on how to buy a car in today's reality

To buy a car as profitably as possible, you should be flexible. It is not always possible to buy the desired model. It is known that trucks and SUVs are in relatively high demand. Now buying a new car is brutal from such a range with a markup of 18% from the price tag on the sticker. Prices for sedans have dropped significantly. They can now be found in official dealerships at a reduced cost.

For a successful car purchase, you should use these tips:

  • compare prices from multiple sellers and dealerships;

  • consult in advance about lending;

  • consider leasing.

The main rule when buying a car today is to act fast. Cars are practically not delayed in the dealership. To pick up the model you like, you should make a decision right away.

Having an old car will help you save a little. Many dealers offer a trade-in program. Thanks to it, you can get rid of your old vehicle and get new wheels for a small additional fee.

If the car is not needed urgently, experts advise waiting a year. There is a tendency that the market will be oversaturated, and many offers will appear at a reasonable price.