By RONALD MONTOYAEdmunds
2021 is an unusual year for the auto industry. While customer demand for new cars rebounded after the economic turmoil in 2020, automakers found themselves unable to meet that demand because of semiconductor chip shortages and problems. about the supply chain. So what should car buyers expect in 2022? Unfortunately the same.
Ivan Drury, Edmunds senior director of insights for Edmunds, said: “Competition for new vehicles will be fierce as inventory shortages persist into 2022. urgent to fast quickly execute a transaction. With this in mind, here are five ways car buying has changed, along with some tips on how to manage it.
SHORT-TERM VEHICLES MEAN HIGHER PRICESVehicles coming into the lot are more likely to have more expensive trim and inflated prices or with more dealer-installed accessories to achieve the same effect. And if that’s not enough to deal with, you’ll find that dealers are much less likely to cut prices because they know there aren’t many other options. It’s a textbook case of supply and demand.
These days, paying MSRP can actually be a “good deal,” relatively speaking.
Tip: We recommend moving your network further out to increase your options. Not all dealers mark cars. If you see one you like, be prepared to move quickly because it might not be there next time.
YOU ARE MORE LIKELY BOOKING THE NEXT CAROne way to avoid dealer price spikes and add-ons is to order a car. This ensures that you get exactly the colors and options you want, as long as you’re willing to wait about six to eight weeks.
The basic idea is that ordering a vehicle saves the dealership on handling and insurance costs for cars parked on or off the premises, and it can then pass on the savings to the consumer. The “savings” these days is to pay the MSRP and not be charged for dealer add-ons or the convenience of having a car instantly.
Tip: The simplest way to book a car is to use the automaker’s website to build the vehicle configuration you want and then send that information to the dealer you want.
LEASE WILL BE LESS ENTIRELYEdmunds analysts say rentals are becoming less popular for a few reasons. Because inventories remain low and vehicles in stock tend to be more selective, they are less likely to be targeted by car manufacturers’ rental programs because these vehicles are often subject to higher depreciation than mid-range counterparts and below.
Tip: You may need to do more planning and research before your lease ends to find affordable options, says Drury. You might also consider repurchasing your lease, as it will likely be a better deal since its sale price was calculated years before the market diverged.
USED MEDIA MAY NOT PROVIDE PREFERENCEMany new car buyers have turned to the used market for a better option or a respite from higher new car prices. But this caused scarcity and record high prices. Edmunds analysts predict that next year, the average used car price will cross the $30,000 mark for the first time. The price of a car from 1 to 3 years old will usually be close to or higher than the price of a brand new car.
Tip: If you’ve used your heart, you should consider certified used vehicles. They can be more expensive than other used vehicles, Drury says, but they come with warranties, are usually in better condition, and you’re more likely to get subsidized interest. Finally, exchange value is currently strong, which could help offset the higher valuation.
AGENTS WILL BE EXPANDED WITH HOME DELIVERY Having a car delivered to your home was something on the “secret menu” in years past, reserved for VIP customers or acquaintances. But after the COVID-19 pandemic forced countless dealership showrooms to close, home delivery and the subsequent paperwork became almost a necessity. It will vary by location and brand, but your chances of completing a car purchase at home will be significantly better than before.
Tip: Be sure to ask for home delivery when buying a car. Pre-filling any financial paperwork will speed up the process.
EDMUNDS SAY: This year, both new and used car buyers will be a no-brainer, but if you have a broader network and are ready to act quickly on a car sale, you’ll have a You can find a new car at a relatively reasonable price.
_____This story was provided to the Associated Press by automotive website Edmunds. Ronald Montoya is the senior consumer consulting editor at Edmunds. Follow on Twitter.
https://www.themorningsun.com/2022/01/12/edmunds-shopping-for-a-car-this-year-will-not-be-the-same/ Car shopping won’t be the same this year – The Morning Sun