Business Buying a car in 2022? Here are 5...

Buying a car in 2022? Here are 5 ways to get the best deal.

-

- Advertisment -

In the market for a car? Driver beware.

With demand rising and supply falling, new and used cars are more expensive than ever, as are car dealerships report record profits.

This situation has led to some sobering figures for car buyers: new car prices have risen 30 percent from 2002 and used car prices are now 43 percent above expected normal levels. CoPilot’s return to normal index. And with interest rates up for the fifth time this year, expect the sticker shock to make your hair stand on end.

Related: The Fed Raised Rates Again. Here’s what that means for your wallet.

What is happening? First, there is a shortage of semiconductor chips, which control most of a car’s electronic functions. And less chips means fewer cars.

Second, the auto industry has yet to recover from the pandemic as manufacturers slowed production and failed to anticipate demand growth, thanks to stimulus measures and people who refused to use public transport.

“The combination of the two basically means the industry produces four or five million fewer cars each year than it could sell,” said Pat Ryan, CEO of Second pilotan app that searches every dealer to find the best car prices.

But with some foreknowledge, you can weather these traffic hazards. Ryan offers strategies for car buyers in 2022.

1. Be patient

Although new car prices will rise more slowly in 2022, they will continue to reach record highs. Dealers drive prices up, sometimes nearly $10,000 above the suggested retail price. But Ryan believes the situation will improve in 6 to 12 months. “The longer you wait to buy, the more savings you’ll get,” he says. “Every two to three months that you wait, you get yourself a notch in terms of price.” Again, this situation will change when there is more stock and the dealer lots are full, but it is now a seller’s market.

2. Look at used cars that are one to three years old

If you absolutely must buy a car in the coming months, you may want to keep an eye on the near-new market cars.

“Over the past 45 days, prices of one- to three-year cars have fallen about 3.6 percent,” Ryan said. The four- to seven-year-old cars are also slowly returning to normal, albeit barely. They are down 1.5 percent.

3. Consider SUVs and Wagons

According to data from CoPilot, some used vehicle types are closer to their regular price than others. For example, the cost of SUVs fell 10 percent last month, most likely because buyers turned away from gas-guzzlers. Wagons and minibuses are also slowly creeping back to their normal price.

But more expensive vehicles are fuel-efficient compact cars, EVs and hybrids. Interestingly, used Ram vehicles are selling 34 percent above normal, according to CoPilot’s Used Car Price Premium Index.

4. Go Domestic

Of course, the cost of cars is completely out of the blue no matter what you buy. But if you dig a little deeper into the numbers, you’ll see some interesting differences. Take domestic versus foreign cars. According to CoPilot, the average price of a domestic used car in August averaged $8,301, down 12 percent from July. Meanwhile, the cost of used foreign cars has not fallen. They are still 44 percent above their expected normal levels.

Certain major brands, such as Ram, Chevrolet and Ford, remain well above their normal price. On the domestic side, Toyota, Honda and Subaru are the big items. You may want to look at less bloated brands like Pontiac, Saturn, Isuzu, and Mitsubishi.

5. Finance with Credit Unions

With interest rates rising, paying cash for your car is your best plan of action. But for most people, that’s not a reality. The next best option is to get financing from a credit union, which offers lower interest rates. Once you’ve determined your budget, base your financing on what you can afford per month.

6. Make use of your old car

Remember, this is a seller’s market. If you have a car to trade in or sell, you can leverage its value against the rising cost of vehicles. You can also use that old car to upgrade to something more economical with up-to-date features.

“It’s like seeing a housing market that’s hot,” Ryan says. “If you don’t have a house, it’s hard to get in. But if you own something with a valuation, and you can roll your profits from one end to the other, it becomes more affordable.”

That can make navigating the car market a lot more pleasant.

Shreya Christinahttps://ukbusinessupdates.com
Shreya has been with ukbusinessupdates.com for 3 years, writing copy for client websites, blog posts, EDMs and other mediums to engage readers and encourage action. By collaborating with clients, our SEO manager and the wider ukbusinessupdates.com team, Shreya seeks to understand an audience before creating memorable, persuasive copy.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest news

Angelica Zachary – the ex-wife of Marlon Wayans

Angelica Zachary rose to fame when she married Marlon Wayans - a famous stand-up comedian, actor, producer, screenwriter and...

15 Effective Ways To Normalize Discussions About Failure

Fear of failure is a common human instinct, especially in the workplace. While failure is often considered a...

Blizzard launches an inclusion initiative for the Overwatch ecosystem

Do you want to know what's next for the gaming industry? Join gaming executives to discuss emerging parts...

Bill Gates says not eating meat won’t solve the climate crisis

Bill Gates has long been an environmentalist, often exposing the dangers of climate change and the potentially devastating effects...
- Advertisement -

Modders jailbroken the PlayStation 5 on year-old firmware

While it's thankfully getting much easier to buy a PlayStation 5, the nearly two-year-old console has had enough time...

AT&T talks about driving innovation through collaboration at Disrupt • ukbusinessupdates.com

We're just weeks away from the first personal ukbusinessupdates.com Disrupt in three years. The agenda is definitely bursting...

Must read

- Advertisement -

You might also likeRELATED
Recommended to you