It’s a wild time for the car market right now. If you’ve spent more than a minute shopping around, then you’ve probably realized that prices are high and availability is low. Dealerships are sometimes asking for thousands of dollars over the manufacturer-suggested retail price (MRSP) for a car.
There are a number of reasons why it’s a tough market for a car buyer right now. Gas prices are pushing up prices, while the chip shortage has caused manufacturing delays and a backlog of orders. Since the pandemic eased up, there has been a surge in people looking to buy new vehicles, which has only added to the pressure.
All this demand is affecting used cars as much as the latest releases. In the case of Tesla, some used cars are even selling for more than new ones, as buyers want to avoid delivery delays on a factory-fresh model.
It might sound tricky, but if you’re looking to buy or trade in a car, we’ve got some car buying tips to help you navigate these choppy conditions.
If you want to negotiate a good deal—you’ve got to be well informed. Once you’ve decided on a make and model, spend some time doing some market research and get a sense of what sort of prices are available. Make sure you know the MSRP and the dealer price before you speak to a seller.
There’s a couple of reasons why it’s a great idea to prearrange financing. Firstly, cars are selling fast, so if you find one that’s right for you, you want to be in a position to snap it up. Secondly, by pre-arranging finance with your bank or credit union, you’ll have a point of comparison for anything the dealership offers you.
It may be easier to stay on budget if you pick up a used model. One warning: The price of used cars is even more inflated than new ones right now—when the market settles down, the value of your car could plummet.
It’s good to be clear about your deal breakers. But considering how tricky it is to buy a car right now, it’s worth being a little more flexible with smaller features, such as color, interior, or the sound system—especially features that you could upgrade for a low cost down the line. If you have a clear idea of what you want and your budget, but are struggling to find it locally, be prepared to look further geographically.
It’s tough for car buyers out there. Really, we feel for you. But with a bit of patience, a good strategy and a touch of luck, we know you’ll be back on the road in no time. And if you need a bit of extra money to boost your purchasing power, consider selling your old car to Peddle.
We’ll give you a quote in minutes—and even send someone to pick it up. If that isn’t a good deal, we don’t know what is