Tag Archives: car shortage

car buying during shortages

3 Car Buying Tips in Today’s Market

If you need to buy a used car in today’s market, it’s probably going to look a lot different than it did the last time you shopped around. Between vehicle shortages, high prices and a booming demand, it’s important to know how to navigate a car purchase in these unprecedented times. 

Let’s check out three tips from the experts that will help you make a smart car purchase in 2022. 

1. Realize What You’re Up Against – and Adjust Your Expectations 

First thing’s first – you need to realize what type of market you’re buying a car in. There’s a computer chip shortage, which means new vehicles aren’t getting made. Plus, car manufacturers are still catching up from other pandemic-related factors such as shutdowns and quarantines. 

The cost of materials is also high. Steel, for example, increased by 200% last summer. Despite these challenges, there’s a booming demand for cars. A strong economic recovery, low interest rates and government stimulus checks have boosted much of this demand. However, automakers can’t keep up. 

2. Be Flexible – Don’t Limit Your Options 

Right now, flexibility is key. There’s a good chance that you won’t find exactly what you’re looking for at the price point you’re used to, so it’s important to keep an open mind. Chances are, there are a variety of brands, models and options that will fit your needs. 

It’s also worth considering older models, as many haven’t changed that much in terms of design and features. You can also expand your search by browsing less popular car types such as sedans, hatchbacks and smaller SUVs. 

3. Prepare to Pay Up – Vehicles Cost More Than They Used To 

Even if you’re able to find everything that you want, be prepared to pay more than what you’re used to. New cars are selling at or above MSRP. Used cars are worth thousands more than they were before the pandemic. This is supply and demand at its finest. 

And remember, dealers and private sellers are aware of the shortages and high demand. They likely won’t be interested in negotiating much, if at all. Expect to pay at least sticker price for the car you want. If you don’t want to pay this price, someone else will. 

If you need to buy a car in these unprecedented times, browse the inventory at RepoFinder.com. We have repossessed cars, trucks, SUVs and recreational vehicles at affordable prices – and they’re available to buy today! 

new cars on dealer lot car shortage

Dealerships Continue to Battle Shortages. Are Repos Your Best Option?

Across the country, dealerships are facing an inventory shortage. This shortage is due to a lack of microchips being produced that are needed to run vehicles. On average, there are about 200 of these microchips in a standard vehicle. Manufacturers like to have a 45 to 60 day supply of these chips, but most only have a 10 day supply.

Let’s learn more about why there is a chip shortage, how it has affected the automotive industry and why buying a repo car might be your best option.

What is the Chip Shortage? 

During the COVID-19 pandemic, manufacturers cut back on their orders for microchips with the assumption that the car business was going to tank. Instead, the opposite happened. It took off. A lot of this had to do with the convenience of online car shopping – people were able to buy vehicles without having to leave their homes. 

Not only were people buying cars during the pandemic, but also the demand for personal electronics like cell phones and laptops increased. These same chips are used in these electronics, so production could not keep up with the demand. 

Fast forward to today and now car manufacturers have a bunch of cars fully built and ready to go to the dealerships but they don’t have the necessary microchips. Not only are dealerships low on inventory, but also they’ve had to increase their prices to help deal with the shortages. 

Now is a good time to trade in your vehicle, but buying something won’t be easy. So what do you do if you need something reliable and affordably priced? Buy a repo car! 

Why Repo Cars Might be Your Saving Grace 

Not everyone can wait for a new car. Some people are buying cars before they even hit the lot, but if you need something safe and reliable to get you to work or school, you can’t wait. A better option is to shop for a repossessed car, or a car that has been seized from its owner for failure to pay. 

Repo cars are often in good condition, though do expect to pay for some light repairs or maintenance. Usually when people aren’t making their car payments, they’re not paying for maintenance either. RepoFinder has a great selection of cars, trucks, SUVs, etc. that you can bid on for free! 

Some of the benefits of buying a repossessed vehicle are: 

  • Incredible savings – pay a fraction of what you would pay through a dealership
  • Fast turnaround times – our cars are available and ready to take home 
  • Motivated sellers that want to move their inventory – work out an even better deal! 

If you’re not finding what you need through a dealership, shop with RepoFinder. We continue to update our inventory with fresh vehicles that are ready for their next owner.