Don’t want to pay the sticker price for a new car? Good luck.
month of low inventory of new cars, thanks to the semiconductor shortage and other supply chain issues, is tip the balance of power in dealer showrooms.
Data from automotive research site Edmunds reveals that so far this month, new car buyers have paid an average of just $ 515 less than the sticker price, the smallest discount in at least 2016.
This means car sellers don’t ask buyers if they want additional features and accessories. Often that is, take out the extended warranty or leave the car on the lot – someone else will buy it.
“Extended warranties, underlayments, things of that nature,” said Ivan Drury, who analyzes new car buying trends for Edmunds. “Yes, they will push you to buy them. They do it naturally anyway, but in this case, they have more flexibility than usual.
While they may have more bargaining power, Drury said auto dealers aren’t reaping huge benefits from squeezing supply. The sales volumes are simply too low, giving new importance to other sources of income.
If potential buyers think they can just go to a dealership two counties away for the latest Ford F-150 lying around, they’ll have to think again.
“They might not sell you a car if you come 150 miles away,” Drury said. “They make their money not only on sales, but also on service. They know you won’t be coming back for that oil change.
Of course, you can let the car run for a few more months and wait for the madness to end. But that wasn’t much of an option for Nina Anziska, who moved to Los Angeles from New York during the pandemic to be closer to her family.
She rented a Volkswagen two weeks ago. Before that, she shared a car with her brother. Which often meant she had to use Uber.
“Looking at the Uber bills over the past two weeks, we realized that we were probably spending as much as we would on another car,” Anziska said.
Anziska could probably get a better deal a year from now if she waited.
But don’t forget that there is also a shortage of Uber drivers.