The Number of Vehicles For Sale Is At an All-Time Low
Deal-hunters should not count on a holiday offer this year. The vehicle industry is suffering from severe shortages due to an unexpected downturn in sales that has left many dealerships without enough stock for end-of-year discounts and incentives.
Before the pandemic hit, J.D. Power found only 36% of vehicle sales went for an asking price or higher; but those rates have increased significantly to 87% in just one year.
Vehicle sales are at a record pace, and vehicle inventories have decreased significantly. The average time for new vehicles on dealership floors is 19 days, while it was 48 in 2020.
Charges Are Added to The Sticker Price
Dealership vehicles for new and used cars have never been more scarce, with the inventory at record lows. That's why manufacturers are adding charges on top of suggested retail prices. These so-called 'market adjustments' were once found in rare models but now are common for the broad range of vehicles.
With supplies limited and monthly sales plummeting at smaller dealerships, some upcharges are necessary for survival.
Average Vehicle Price Outburst
The pandemic has pushed prices for new vehicles up to an all-time high of $44,000. This is $10,000 more than prior to the epidemic. The secondary market for used vehicles has always been robust, but it's reached new heights this year. The average price of a car on sale right now is more than $30,000 —a figure that was never seen before.
The paucity in supply makes manufacturers focus their marketing campaigns towards high-end vehicles rather than affordable ones, leading many budget-conscious car buyers out of the market at all.
Some analysts predict that this situation will worsen by 2022, so there likely won't be many deals on new vehicles until at least next year.
This is not legal, financial, or professional advice. Please consult a legal, financial, or professional advisor for your specific situation.