Car Prices Aren’t Lowering Anytime Soon
Studies show that the recent low supply and high demand for cars have produced high sticker
prices. And even after some improvement, the price for a vehicle will not subside anytime soon.
As you have now come to know, a global shortage of microchips – a key element used to operate
current vehicles – began at the start of the pandemic in early 2020. This has caused car prices to
increase in the past couple of years.
In fact, the average price paid for a new car is $45,872, above the average manufacturer’s
suggested retail price (MSRP) of $45,209. And unfortunately, the used-car market is also staying
put with higher sticker prices. And because of limited supply, buyers are paying an average of
$29,011, a 27.9% spike from last year.
To tally the percentage of those who were looking to purchase a car in January, car shoppers
paid above the manufacturer’s sticker price by more than 80%, according to researcher
Edmunds.
What’s more, after profiting from the rise in demand for cars, dealerships aren’t making the
hasty return to those lower prices we’ve come to remember.
“The typical dealership experience that consumers are familiar with — walking dealer lots with
rows and rows of cars, negotiating over price and getting many incentives — is not likely to
return this year because there are 4.5 [million] to 5 million consumers on the sidelines waiting
for cars,” said J.D. Power head of data and analytics Tyson Jominy.
So yes, if you’re looking to purchase a car in the near future, the chances that you’ll end up
agreeing to an unsavory payment process are more than likely, unless you decide to finance your
auto loan with Texas People.
Whether you’re in the market for a new or new-to-you vehicle, Texas People offers easy financing
with our competitive, low rates, terms up to 72 months and much more incentives.
And if you’re looking to lower those payments that you’ve initially agreed to, we may be able to
lower your payment and possibly shorten your term when you refinance with us. Regardless of
your current car buying experience, we’re here to help.
Sources:
O’Brien, Sarah. “New and Used Car Prices Keep Climbing. Don’t Expect Relief Anytime
Soon.” CNBC, CNBC, 8 Jan. 2022,
https://www.cnbc.com/2022/01/08/new-and-used-car-prices-keep-climbing-dont-expect-r
elief-soon.html.
Coppola, Gabrielle. “Car Discounts Aren’t Coming Back After Pandemic.” Bloomberg.com,
Bloomberg,
https://www.bloomberg.com/news/articles/2022-02-17/car-discounts-aren-t-coming-back
-after-pandemic-autonation-says
