Los Angeles, CA, United States, 05/23/2022 / CarZing /
The Covid pandemic caused enormous economic disruptions that’ll take time to recover from. Many industries are still reeling from its effects, including the auto industry. Some factories that produced major manufacturing materials for vehicle parts also haven’t recovered. Some finished parts are still stuck in ports to date.
According to statistics, chip shortage cost the auto industry an estimated $110 billion in 2021. Dealers decry low inventory, and buyers are forced to pay more for the few available cars for sale. Looking to buy a car in today’s crazy market? Here are four solutions.
1. Consider a Trade-In
In the past, many people who could not afford new cars opted for used models. Things have changed. The demand for used cars is now higher than for new cars. According to one report, the market for secondhand vehicles shot up by 40% between February 2020 and June 2021. This figure is not likely to go down anytime soon.
But this shouldn’t worry you, consider a trade-in. Talk to a dealer about trading in your old car for the model you want to buy. If your car’s value is lower than the value of the car you’re buying, work out the difference and top up the deficit.
2. Check Out Other Car Models
Car shortage is now common, notwithstanding the make or model. And after the auto industry reported a massive chip shortage, car makers had to remove some features from their vehicles–like park assist and automatic start and stop.
If the model you had hoped to buy is unavailable or costs more than the Manufacturer Suggested Retail Price (MSRP), look for other models and features you can sacrifice for a reduced price. If you plan to finance the car using a loan, use a car loan calculator to compare the prices of the available models and select what works for you.
3. Expand Your Search
Car prices vary by location. One car model might be highly desirable in a particular geographical locale and not the other. For instance, the convertible Ferrari has a lower demand in cold North Dakota compared to Los Angeles. Buyers can capitalize on such geographical differences and expand their search to other cities.
Another important thing to consider is the cost of living in your area. Larger cities have more dealers and inventory. Since there are more options, dealers are more willing to negotiate prices. If you’re buying the car online, factor in the shipping charges to see if it’s worth it.
4. Buy Directly from the Automaker
Some dealers are taking advantage of the challenging times and hiking car prices. They are using minor add-ons like tinted windows and paint protection films as an excuse to inflate car prices beyond MSRPs. According to statistics, 8 out of 10 American car buyers paid more than the MSRP in January this year.
Here’s what you can do. Talk to the dealership’s sales team about your desire to order a car directly from the factory. Let them know the features you want to be included and those you don’t want. Since the car will not stay longer in the showroom, they won’t turn down your offer. Use the opportunity to negotiate the price.
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Source: Story.KISSPR.com
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