New cars come with high prices over MSRP, long waits, no guarantees; used cars could be better

Provide chain backups, a serious microchip scarcity, and COVID-19 manufacturing facility shut downs are simply among the the explanation why it is laborious to discover a new automotive nowadays.

“Some sellers could be straight up and say, we’ve nothing on the ground,” mentioned Kevin McGurn, who was trying to purchase a automotive. “And there is some would say, I gotta inform you, put down a deposit and get in line.”

When McGurn did discover automobiles accessible he was instructed that costs are sky excessive.

“We’re promoting automobiles, about $17,000 over sticker. So I would like you to know, I can promote it for that. Individuals are keen to pay for that. So we’re going to be promoting and it was a automotive that wasn’t on the lot,” he mentioned he was instructed. “I could not check drive. They needed a deposit. I had no assurance that that was gonna actually be for me.”

The I-Staff obtained an e-mail from a automotive vendor to a possible purchaser saying, “We are able to order one for you however the turnaround is about 6 months at this level…all 2023 automobiles of a sure mannequin are going for $7,000 over sticker.”

“A yr and a half in the past we had 200 automobiles triple parked in these areas. Now, should you look, we’ve no automobiles right here,” mentioned McGrath Evanston Subaru supervisor Jimmy Kottler.

Kottler mentioned consumers can discover a automobile in the event that they order forward of time and wait. However to be able to lower your expenses, it’s best to store round, take additional time and do not be afraid to ask questions like “do you cost over the Producer Steered Retail Value?”

“Flat out name a dealership they usually ask in the event that they’re charging a market adjustment value; they are going to inform you if they’re,” he mentioned.

He additionally added that there are dealerships, together with his, which aren’t charging over the MSRP.

A current examine from automotive buying specialists at Edmands.com discovered eight out of 10 of automotive consumers paid above sticker value for brand new automobiles in January, In line with Edmunds, 82% of consumers paid above MSRP for brand new automobile purchases in January. On the identical time in 2021, solely 2.8% of consumers paid above MSRP.

Ivan Drury, Senior supervisor of Insights at Edmunds.com, mentioned you should utilize the automobile you’ve for leverage.

“When you’ve got a trade-in, know that the automotive market is super-hot, as a result of as individuals are paying extra for brand new automobiles, guess what? Folks pay extra for used automobiles and have a trade-in, you may actually need to store round that worth for that automobile as a result of that trade-in worth goes to be value fairly a bit greater than you ever anticipated,” he mentioned. “So that you may really be capable of chip away lots of that new automotive value.”

And be versatile: Take into account various automobile varieties, manufacturers and colours and be keen to compromise on options. Broaden your search to a dealership in a metropolis which will have a better stock. Fly there and drive again.

“Attempt to ask the vendor to throw in some extras, you recognize, they’re often going to attempt to promote you an prolonged guarantee anyway, possibly some form of tire and windshield safety, rustproofing you recognize, issues like,” suggested Drury.

You too can lower your expenses should you simply wait. Consultants say the delays and value hikes ought to stage off within the subsequent six months to a yr.

McGurn mentioned he ended up discovering a automobile and never paying over the MSRP however he was pissed off with the method.

“They’re actually doing customers a disservice they usually’re not constructing a loyal foundation,” he mentioned.

Used automotive costs are up too, however you often haven’t got to attend for them. In the event you’re searching for a used automotive, it’s best to evaluate costs to web sites like Kelley Blue Guide and Edmonds before you purchase.

If shopping for used at a vendor, ask if they’ll throw in a guaranty or free upkeep to make up for the upper value.