Buyers should expect new car prices to remain high until 2022. According to a report from Cox Automotive, the inventory of new vehicles could improve, but is expected to remain historically low. Coupled with a continuing trend in sales favoring more expensive SUVs and trucks, average prices might not come down anytime soon.
Actual prices are highly dependent on local availability at resellers. While there are ways to avoid a mark-up, we believe it is likely that dealer mark-ups will not go away in 2022. Not so long ago, it was not unreasonable to pay well in fall short in competitive auto markets or take advantage of 20% factory car incentives. excluding MSRP.
A year ago, dealer incentive bulletins reveal that Toyota offered an unannounced dealer cash incentive worth $ 2,500 on the Camry in areas like the Southeast. This is no longer the case. We’re also seeing a lot less volume-based incentives giving dealers big bonuses for making the most car sales.
Consumers have become more comfortable paying at MSRP or above due to market conditions. While production issues due to a shortage of chips are expected to improve, inventory will likely experience strain that buyers may not have faced the last time they were in the market to buy or rent. a new car or a new truck.
Your best bet for getting a deal might be to take advantage of the manufacturer’s incentives. For example, Toyota continues to offer 0% financing on the all-new 2022 Tundra in parts of the country. Meanwhile, the cheapest rental deals can often give you access to incentives that you might not be able to get when buying.
Can’t see the car you want in stock? Consider posting a deposit for the car or truck of your choice. In a sellers market, buyers can find themselves in a competitive situation which can make it more difficult to find a car in stock. Factory orders may be an option, and making a reservation may be a way to save your spot in the queue.
In some cases, manufacturers pay buyers to wait. For example, Honda has a rate foreclosure offer that can allow you to take advantage of current interest rates for up to 90 days if the car you want has not yet arrived. If you can’t afford to wait, these types of programs can get you a better deal than you think.
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