Why Now Is a Good Time to Buy a Car: Tips from a Dealer
Should I Buy a New Car Right Now?
Buying a car is one of the most important financial decisions you will make in your life. However, in the current market, some people may question whether now is a good time to buy a car. In 2022, the average price of a car is just over $48,000. If you are intimidated by that price, there is no need to fear.
Continue reading to learn why now IS a good time to buy a car.
Car Prices Still Increasing
The first reason you should consider buying a car now is that car prices continue to increase. You see what the average price of a car in 2022 is above. And unfortunately, prices don’t seem to be decreasing any time soon, so it may be better if you bite the bullet and buy a car now.
For example, let’s say the average car price will increase by another 12% in 2023. This would result in the average car price being just under $54,000. If you are concerned about that price going up in the future to something that you may not be able to afford, it could be beneficial for you to buy a car now.
Related: How to Find a Car in Your Budget Based on Your Salary
Another thing that you should be aware of is that there is a current shortage in production. According to this report, total production at pre-pandemic levels is not expected to return until at least 2024. This means that there are not as many microchips available for new cars, and there are not as many new cars at dealerships as before the pandemic.
As a result, it is a seller’s market because there is insufficient supply to meet the current demand. That means that dealerships currently have the leverage, and for once, you may have to pay the sticker price or above.
With all of that being said, why does this mean you should buy a car now? The simple answer is that if this situation does not improve as the report above predicts, then you could see prices go up even further.
Used Car Value
Typically, cars go down in value the minute you drive them off the dealership lot. What if you were to find out this is not always true?
This is the situation you see because of the shortage above. As a result, the demand for cars has always brought the used car market value up exponentially.
What this means is that this is a rare time in history when you could trade in a used car and potentially get more value for it than you paid for it. For those that regret the car they purchased, want a free upgrade, or bought too many cars in the past, there has never been a better time to sell a used car.
Many people buying cars have to trade in or sell their old used cars to make room for their new ones. As a result, old cars can have a better market than they normally would. So, if you want to go from the 2020 to the 2023 model, you should sell your old car now and buy the new one while the market is hot. If you need to downgrade the car, it is a good time to have a valuable used car to trade in.
Related: 5 Reasons to Purchase a Used Vehicle
Time for Research
One part of the buying process that may be a blessing in disguise for you right now is the research stage. Since car prices are higher than before the pandemic, you need to take some extra time to ensure that you are getting fair market value.
To do this, you should compare car prices with any source that you have available. Doing more research on a car will make you more prepared when it comes time to go to the dealership. The current car market may force you to put more effort into research, and if you plan on buying another car in the near future, it will make you a more knowledgeable shopper.
Learn More: 5 Reasons to Buy a Kia Right Now
Finally, the current market should incentivize you to have the financing you need to buy a car. There is no better way to do it than to pay in cold hard cash.
While only some have the means to do this, you should come up with the best alternative possible to do so. That could mean saving up to put more money down on a car or even building up your credit to get a better financing rate.
Now Is a Good Time to Buy a Car
These are just some reasons why now is a good time to buy a car. You can trade in a used car very easily in this market, you can avoid an even worse shortage, and car prices show no signs of slowing down.
If you or anyone you know is interested in buying a new car, don’t hesitate to contact the experts at Burlington Kia! We would be happy to help you find the car that checks all your boxes. Visit our website or click the button below to connect with your team!