Is it a good time to buy a car?
Buying a car is never easy, particularly now that everyone is talking about soaring prices due to lack of new cars available because of production issues. However, you don’t need to be discouraged as there are a lot of options available also during a seller market.
Be Ready to Pay More
In today’s market, you need to be ready to pay a premium to buy a vehicle because there are more buyers than cars. This is particularly true for used cars since manufacturers are delaying new car productions due to lack of components caused by Covid.
On average, 2021 has seen a car price increase averaging 10%
You Need to Ask Fast
Limited availability also means that cars will sell faster than usual since people won’t be able to shop around as much as they would like.
Once you find a car you really like, you should start planning your purchasing strategy and ideally you should be aggressive to secure a deal.Unfortunately, seller markets are highly competitive.
You Won’t Get Many Extras on New Cars
During a seller market dealers won’t need to offer as many incentives to sell a car and therefore you will get less than during a seller market. As a result of that, we have seen incentives decrease a good 40% in the last year alone.
You Can Get a Better Financing
With less cars on the market, financing institutions might fight over business and lower their interest rates. This means that you might balance the price increase with more convenient financing terms. Not too shabby!
You Will Get More Out of Used Cars
You might be able to get a good return on your old car and decrease the price of a new one. Given that the market has such a lack of vehicles, you can actually benefit from it and get a better deal than during a buyer market.
Considering everything, it seems that it is a good time to buy a car if you really need a new one. Otherwise, waiting might get you a better deal.