If you thought the car business was crazy in 2021, you ain’t seen nothing yet. This year, the automotive industry is being hit harder than Will Smith’s slap heard around the world. The supply chain crisis, inflation, soaring gas prices, high turnover and a slew of other problems is continuing to plague the $82 billion industry. And it’s not going to end anytime soon.
The shortage of new car inventory has allowed car dealers to charge full price – sometimes even above MSRP on their vehicles– even thousands above MSRP on the most popular models. Insanity!
For the first time ever, the average price of a new car is over $47,000, according to Kelley Blue Book. In 2020, the average price of a new car was $40,000. That’s $7000 more in just two years!
So, do you bite the bullet and pay top dollar? You will probably have a long wait. Do you go electric? That’s a long wait, too. Or do you swallow your pride and buy a pre-owned?
Well, dealers are charging a premium for preowned vehicles, too. It’s simple supply and demand – no new car inventory means car dealers need to make money on preowned vehicles – especially trucks and SUV’s.
If you want to go electric, a new Tesla 3 will set you back $46,000, and
there’s a 2 to 5 month wait. A new Tesla Y lists for $62,000, and a new
Tesla S starts at $99,999. Are you really ready to go electric?
Here are some suggestions.
Ask your dealership if they will do a “dealer trade.” If your dealer doesn’t have the vehicle in stock, this is a good way to get the car you want. The two dealers will trade vehicles – even if it’s incoming – and it should not cost you extra.
You can also order a car from the factory. You’re not going to get a discount, but you won’t pay a dealer markup either. The best way is to go to the manufacturer’s website and build your car online. There’s a long wait when you buy a car this way, especially on high demand models.
But if you have the new car fever, or if your car is on its last legs, and you can’t wait, find a comfortable chair, get on the internet, and start shopping around.
Here’s an idea – buy an auto dealer email list. A good email list will list all the dealerships in your area and the emails of managers or owners so you can write directly to the decision makers – and avoid games with salesmen or fast talkers in the BDC department. Send an email out to 25, 50 even 75 dealers in the area or region and ask for the specific vehicle you want. If you want to go this way, check out The Email List Company. They are helpful, reliable and inexpensive.
These are tough times for everyone, and it won’t get better until at
least the midterm elections (That’s in November.) But don’t let buying a new car drive you crazy. With persistence (and a little luck), there are
ways to get the new car you want – and you won’t have to wait until the
end of time.