Solely a handful of unsold 2021 Ram pickup vans sit on the empty storage lot outdoors a Ram dealership on Sunday, Aug. 29, 2021, in Littleton, Colo.
AP Picture/David Zalubowski
2021 was an uncommon 12 months for the automotive trade. Whereas buyer demand for brand new automobiles rebounded from the financial uncertainty of 2020, automakers discovered themselves unable to satisfy that demand due to semiconductor chip shortages and provide chain issues. So what ought to automobile customers count on for 2022? A lot of the identical, sadly.
“Competitors for brand new autos might be fierce as stock shortages persist in 2022,” mentioned Ivan Drury, Edmunds’ senior supervisor of insights for Edmunds.
Buyers immediately should deal with a restricted choice, dealership markups, little to no reductions, and a better sense of urgency to maneuver rapidly on a deal. With this in thoughts, listed here are 5 ways in which automobile shopping for has modified, together with a number of tips about the right way to handle it.
ONGOING VEHICLE SHORTAGE MEANS HIGHER PRICES
Autos that make their means onto the lot usually tend to be in additional costly trims and both marked up in worth or with quite a few dealer-installed equipment that obtain the identical impact. And if that wasn’t sufficient to deal with, you’ll discover that dealerships are a lot much less prone to come down on worth since they know there aren’t many different choices out there. It’s a textbook case of provide and demand.
As of late, paying MSRP may truly be a “whole lot,” comparatively talking.
Tip: We advocate casting your web out farther to extend your choices. Not each dealership is marking up autos. Should you see one you want, be ready to maneuver rapidly as a result of it might not be there the following time.
YOU’RE MORE LIKELY TO ORDER YOUR NEXT CAR
One method to keep away from the markups and seller add-ons is to order the automobile. This ensures that you simply get precisely the colour and choices that you really want, supplied you’re keen to attend roughly six to eight weeks.
The primary thought is that ordering a automobile saves the dealership on lot charges and insurance coverage for autos parked on- or off-site, and it might then move the financial savings on to the patron. The “financial savings” as of late is paying MSRP and never being charged for seller add-ons or the comfort of getting a automobile instantly.
Tip: The best method to order a automobile is to use an automaker’s web site to construct the automobile configuration you need after which ship that info to your most popular dealership.
LEASING WILL BE LESS ENTICING
Edmunds analysts say that leasing is changing into much less widespread for a few causes. As inventories stay low and the automobiles which can be in inventory have a tendency to be extra loaded with choices, they’re much less prone to be focused by automakers’ leasing applications as a result of these autos sometimes endure larger depreciation than their mid- to lower-level trim counterparts.
Tip: You may must do some further planning and analysis earlier than your lease ends to search out reasonably priced choices, mentioned Drury. You too can take into account shopping for out your lease, as it’ll probably be a greater deal because the promoting worth for it was calculated years earlier than the market took a flip.
USED VEHICLES MAY NOT OFFER RELIEF
Many new-vehicle customers turned to the used marketplace for a greater choice or respite from the upper new automobile costs. However this, in flip, brought on its personal scarcity and record-high costs. Edmunds analysts predict that in the approaching 12 months, the common used automobile worth will surpass the $30,000 mark for the primary time. Costs for 1-to-3-year-old autos may also usually method or exceed the worth of what they’d value brand-new.
Tip: When you have your coronary heart set on used, it’s price having a look at licensed pre-owned autos. They might be pricier than different used autos, however they arrive with a guaranty, are sometimes in higher situation, and also you’re extra prone to get a backed rate of interest, mentioned Drury. Lastly, trade-in values are very sturdy now, which might help offset the larger pricing.
DEALERSHIPS WILL BE MORE OPEN TO HOME DELIVERIES
Having a automobile delivered to your own home was one thing of a “secret menu” merchandise in previous years, reserved for VIP purchasers or these within the know. However after the COVID-19 pandemic pressured the shutdown of numerous dealership showrooms, residence deliveries and the next paperwork turned nearly a necessity. It’ll fluctuate by location and model, however your probabilities of wrapping up a automobile deal at residence are considerably higher than earlier than.
Tip: Ensure to ask for a house supply when making a deal on a automobile. Filling out any finance paperwork beforehand will significantly velocity up the course of.
EDMUNDS SAYS: It is going to be slim pickings for each new- and used-car customers this 12 months, however for those who solid a wider web and are ready to behave rapidly on a automobile deal, you need to have the ability to discover a new automobile at a comparatively truthful worth.