SHOPPING FOR A CAR THIS YEAR WILL NOT BE THE SAME

2021 was an unusual year for the automotive industry. While customer demand for new cars rebounded from the economic uncertainty of 2020, automakers found themselves unable to meet that demand because of semiconductor chip shortages and supply chain problems. So what should car shoppers expect for 2022? Much of the same, unfortunately.

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“Competition for new vehicles will be fierce as inventory shortages persist in 2022,” said Ivan Drury, senior manager.

Shoppers today must contend with a limited selection, dealership markups, little to no discounts, and a greater sense of urgency to move quickly on a deal. With this in mind, here are five ways that car buying has changed, along with a few tips on how to manage it.

ONGOING VEHICLE SHORTAGE MEANS HIGHER PRICES

Vehicles that make their way onto the lot are more likely to be in more expensive trims and either marked up in price or with numerous dealer-installed accessories that achieve the same effect. And if that wasn’t enough to contend with, you’ll find that dealerships are much less likely to come down on price since they know there aren’t many other options available. It’s a textbook case of supply and demand.

These days, paying MSRP might actually be a “good deal,” relatively speaking.