The supply chain is still reeling from the pandemic shutdowns over the last two years. While we are starting to see some sectors go back to normal, the car market is still struggling to regain a sense of normalcy. The main issue with the car market is the lack of inventory caused by the halting of production at the beginning of the pandemic and the shortage of computer chips needed to run sensors, electronic dashboards, and infotainment systems. These chips are also used in just about every electronic device you can think of, from cell phones to video game consoles to computers adding to the issue.
These factors have created a shortage in the production of new vehicles causing used cars to be in high demand and therefore more expensive. If you’re looking to buy a car, you may have found yourself stuck between a rock and a hard place. Right now, you might have to choose between paying a high price for a used car or putting down a deposit and waiting 2-4 months for the production of a new vehicle. We’ve got some advice to help you navigate the current car market so that you can make the best financial decision possible.
If you have a reliable vehicle that still has some life in it, it might be wiser to wait for the car market to level out. Things are beginning to get back to normal, and experts believe that car buying will be back to a relatively normal standard in 2023. Waiting can potentially give you time to save money and get a lower monthly car payment.
If you can’t wait to buy a car, consider visiting several different dealerships and see what deals or perks they can offer you. While not many dealers have sale events, many still offer service packages or roadside assistance for 2-3 years after purchase. Scour used vehicles on the website to see what inventory is available or talk with a salesperson to learn more about their process for buying a new car. The more information you have, the easier it is to make the decision that’s right for you and your finances.
While some people typically don’t like buying new cars due to the value loss after driving off the lot, buying a car in 2022 looks slightly different. New cars are often the same price or less than used cars. So instead of looking for a used car that already has wear and tear and logged miles, buying a new car could actually be the better deal at the moment.
When visiting dealerships, be sure to ask if they are selling new vehicles at MSRP or if they have a markup. Double-check their quote against the manufacturer’s website. Some dealerships are taking advantage of the high demand for cars and marking up prices unnecessarily. Many dealers are not marking up their vehicles, so take the time to find the right car dealership for you.
Whether you decide to buy a new or used car, either now or later, First Independent Bank is here to help. We offer auto loans for new and used vehicles, or we can set you up with a savings account that will allow you to be prepared to buy your car when the time is right.