Are you thinking about buying a new or used vehicle before the end of the year? You might be better off waiting until 2022, if you’re able to. Why? A number of negative factors have come together to make 2021 one of the worst years to buy a car. Between supply shortages, few incentives and a lack of choice, many people have delayed online car shopping.
Below are the top three reasons why it’s best to wait until 2022 to buy a new or used car. Thankfully, it’s just around the corner, so you can start preparing for your car purchase today!
1. Inventory is Low
Inventory for vehicles is low right now. The computer chip shortage is largely to blame, as some electronic parts use 500 to 1,500 chips depending on their complexity. As this article points out, car manufacturers like Toyota only have an 18-day supply of new cars.
But what if you can’t wait and need a new car right now? Rest assured you can find a used vehicle through RepoFinder. We continue to maintain a strong inventory of repo cars, trucks, vans and SUVs that are available to purchase.
2. Few Incentives are Available
With high demand and low inventory, there are few incentives available. Normally, both car manufacturers and dealerships offer incentives so they can sell more cars. But since there aren’t many vehicles available to buy, you won’t find many good incentives.
This also means that negotiations probably won’t get you far, either. Car dealers know that if you don’t want to buy the car for the price it’s listed for, the next person will. Again, if you want a good car at a decent price, it’s best to open up your options and consider repo cars.
3. Dealers Prices are High
The Manufacturer’s Suggested Retail Price (MSRP) is the price the manufacturer suggests selling the car for. To be competitive, dealers usually stick to this price range, but this is not the case today. Many dealers are charging $10,000-$20,000 over sticker price.
Cars are already expensive, so you have to ask yourself how much you are willing to spend on a car. Keep in mind that you must be able to afford your monthly payments, too. Also, since dealers are raising the prices of new cars, the banks are valuing them higher and this can make it harder to get approved for an auto loan.
Need a Car Now? RepoFinder Has Inventory Available!
RepoFinder maintains a steady inventory of vehicles. Even though there is a car shortage, we’ve been able to turn over our inventory because the banks are repossessing vehicles due to outstanding loan balances. If you can’t wait until 2022 for prices to decrease and inventory to increase, you can find what you need through RepoFinder.