Many people are wondering when car prices will return to normal. We remain in a seller’s market, it’s still a terrible time to buy a new or used automobile. This originated, like so many other things, with the Covid pandemic. The shortage of microchip processors, which controls automobile electronics, has caused large manufacturing delays which will likely not return to normal until 2023. This is causing a shortage of new automobiles, which forces people to buy used, and hence market values increase for both (See our blog post, It’s a Seller’s Market . . . Buyers beware! for additional information).
Dealerships are setting records in regard to profits because new cars are selling for over MSRP (Manufacturer's Suggested Retail Price). For decades the majority of cars were sold for thousands below MSRP. Used cars are selling for 20 to 40 percent higher than they were a year ago. New and used car prices are predicted to remain high until 2023.
If you must buy a car now, your best chance of getting a fair deal is through private sales. A lot of sellers don’t realize how much they can sell their car for in this over-inflated market, or perhaps some don’t care and are asking for what they feel is fair. Dealers are actively searching private party ads for used cars, making it even harder to find a good deal. They are also advertising that they buy cars. It amazes me that people will sell their car to a dealer, whatever they offer you for your car, they are going to sell it for more. Sell it yourself and pocket the money you would have lost.
No matter what situation you are in, including searching for a new or used car, contemplating selling a car you currently own or wondering what your car is actually worth, we can help.
Comments