How buying a car in 2022 won’t be the same – Pasadena Star News
By RONALD MONTOYA | Edmunds
2021 has been an unusual year for the automotive industry. As customer demand for new cars rebounded from the economic uncertainty of 2020, automakers found themselves unable to meet that demand due to shortages of semiconductor chips and supply chain issues. So what should car buyers expect for 2022? Much of the same, unfortunately.
“Competition for new vehicles will be fierce as inventory shortages persist into 2022,” said Ivan Drury, Edmunds Senior Knowledge Manager for Edmunds.
Buyers today must contend with limited selection, dealership markups, little to no discounts, and a greater sense of urgency to get to a deal quickly. With that in mind, here are five ways car buying has changed, plus some tips on how to manage it.
CONTINUED SHORTAGE OF VEHICLES MEANS HIGHER PRICES
Vehicles hitting the field are more likely to be in more expensive versions and either priced up or with lots of dealer-installed accessories that achieve the same effect. And if that wasn’t enough, you’ll find that dealers are much less likely to drop prices because they know there aren’t many other options available. This is a textbook case of supply and demand.
These days, paying the MSRP might actually be a “bargain”, relatively speaking.
Tip: We recommend casting your net further to increase your options. Not all dealerships mark vehicles. If you see one you like, be prepared to act fast because it might not be there next time.
YOU ARE MORE LIKELY TO ORDER YOUR NEXT CAR
One way to avoid dealer markups and surcharges is to order the vehicle. This ensures that you get exactly the color and options you want, as long as you’re willing to wait around six to eight weeks.
The basic idea is that ordering a vehicle allows the dealership to save on lot fees and insurance for vehicles parked on or offsite, and they can then pass the savings on to the consumer. “Savings” these days is about paying the MSRP and not being charged for dealership add-ons or the convenience of having a vehicle right away.
Tip: The easiest way to order a vehicle is to use a car manufacturer’s website to create the vehicle configuration you want, then send that information to your preferred dealership.
RENTAL WILL BE LESS ATTRACTIVE
Edmunds analysts say renting is becoming less popular for several reasons. As inventories remain low and in-stock cars tend to be more option-laden, they are less likely to be targeted by automakers’ leasing programs, as these vehicles typically experience higher depreciation. higher than their mid to lower level counterparts.
Tip: You may need to do some additional planning and research before your lease ends to find affordable options, Drury said. You may also want to consider buying out your lease, as this will likely be a better deal since the sale price was calculated years before the market turned around.
USED VEHICLES MAY NOT OFFER REPAIR
Many new-vehicle buyers have turned to the used market for better selection or respite from higher new-car prices. But that, in turn, caused its own shortage and record prices. Edmunds analysts predict that in the coming year, the average price of used vehicles will cross the $30,000 mark for the first time. Prices for 1-3 year old vehicles often approach or exceed what they would cost new.
Tip: If you have the heart for the occasion, it’s worth taking a look at Certified Pre-Owned vehicles. They may be more expensive than other used vehicles, but they come with a warranty, are often in better condition, and you’re more likely to get a subsidized interest rate, Drury said. Finally, trade-in values are very strong now, which can help offset the higher prices.
DEALERS WILL BE MORE OPEN TO HOME DELIVERIES
Having a vehicle delivered to your home was part of the “secret menu” of years gone by, reserved for VIP customers or connoisseurs. But after the COVID-19 pandemic forced countless dealer showrooms to close, door-to-door deliveries and the attendant paperwork became almost a necessity. This will vary by location and brand, but your chances of closing a home car deal are significantly better than before.
Tip: Be sure to request door-to-door delivery when making a deal on a car. Completing all the financial documents beforehand will speed up the process considerably.
EDMUNDS SAYS: It will be slim for new and used car buyers this year, but if you cast a wider net and are willing to act quickly on a car deal, you should be able to find a new car at a relatively low price. correct.
This story was provided to The Associated Press by automotive website Edmunds. Ronald Montoya is Consumer Advice Editor at Edmunds.