Written by: Ashley Perlmutter
In the market for a new car? Read this first. As you may already know this but the car industry has had quite the year, with used and new car prices shooting through the roof. Used cars have especially skyrocketed to record high prices and are actually hard to find as we’ve been following tons of pandemic-related chip shortages across the world. This shortage is leading to a decrease in supply during a time in which there is such great demand.
Is it just cars that are more expensive? No it is not, the price of everything you want to buy is rising, and consumers are certainly feeling the impact of it first hand. Take a look at the chart below.
So, knowing that inflation is real, demand is high, and supplies are limited, what should you do if you are in the search for the car of your dreams? Well, there’s a good chance that the car you are searching for won’t be available, so when going into your search, be flexible and have a few cars in mind that you are interested in. You may also want to expand your geographic search since we are in such a competitive market and the dealership up the street might not have what you are looking for. Put some time into researching and you may actually find another car out there that you like better.
You may also want to consider some other options as well, such as leasing a car. With the demand of purchasing a car being so high, it could be a good idea to see what offers and specials dealerships are giving on leases. While leasing a car may not be the best option for you, it doesn’t hurt to check it out and see what deals there are. You may be able to swing a great deal if a certain dealership is behind on meeting their amount of leases for the year. If you are in the middle of a lease for your car, inquire about the purchase price of that vehicle after your lease is up.
A bright-side to the skyrocketing car market right now is the amount of money you can get for your current car, as I can contest first hand. A month ago, I was offered such a great deal on my used car, more than I would ever usually get, due to this crazy demand for used cars. So, if you are willing to part ways with your car, now is a great time to sell and get the most for your vehicle. However, if you are selling your car now, keep in mind that your next dream car may not be available for immediate purchase, so make sure to have a back up plan in the meantime.
It will be interesting to see how the surging COVID-19 delta variant impacts the car market and when the demand will start declining.