With new and used car prices rising due to shortages, you may want to reconsider your plans to buy a car and try again later — at least until the end of the summer, or when supplies pick up again. Otherwise, you’ll really have to do your research to get a good deal, as you’ll be faced with higher prices and fewer choices.
How Long You Can Wait for Your Next Car AND What You Can Do About It
Factory closures early in the pandemic led to a microchip shortage, which slowed new-car production and resulted in 64% lower inventory at dealerships nationwide, compared to a year ago. You may have also noticed fewer cars on dealer lots: The average number of new cars on dealer lots is trending toward the low 30s, well below the historical norm of at least 60, according to Cox Automotive. According to Kelley Blue Book, the average asking price of a vehicle in April was $39,833, up 7.9% from comparable figures in 2019.
The shortage, combined with increased demand, is also affecting the used car market, which now has an average price of nearly $24,000, according to the CarGurus price index. That’s up 27 percent from May of last year (pickups are the most sought-after, with prices up 40.6 percent).
As Matt DeLorenzo, senior managing editor for Kelley Blue Book, explains:
