Being in the business for over 9 years and seeing all the ups and downs of the car market and the buying seasons I have not experienced anything like this before. New car stores are going out of business more than ever before due to the shortage of vehicles and parts supplies. Vehicle shortages are caused by chip shortage, lack of human resources and government shutdowns.
What does this mean for you?
According to Consumer Reports:
Short supply of vehicles in the market topped with high consumer demand, are driving pre-owned market prices up. Current prices are 42% higher than they were in the first quarter of 2020. With the auction prices not decreasing day over day, waiting to make a purchase is going to cost more.
Some indicators and market experts are estimating the chip shortage could continue through to 2024 and it is difficult to pinpoint exactly when it will end according to an article in CNBC.
Consumer searches for pre-owned cars are double what they were a year ago. Cars are moving faster than ever before – consumers are advised to move quickly if they see a car they like.
If you have a vehicle to trade in, it’s the best time to do it now. The value of your vehicle has been going up as the market is going up. But more unique, low supply and more desirable vehicles are going up faster.
The moral of the story? Don’t wait when you see a car that you like, past buying experiences are outdated in the current market. Waiting costs, especially when prices are still on the rise. You don’t want to miss out on a vehicle or have to pay more when you can get the best deal now.
If you have any questions or perhaps additional insights please feel free to reach out. We are all navigating this odd market together.
