If you shop for a new or used car in today’s overheated market, you will find that the game has changed. Various conditions apparently gave the sellers the upper hand.
“Tight inventory and sky-high prices have caused many buyers to postpone their purchases,” said Michelle Krebs, executive analyst for Cox Automotive, a leading automotive communications, media and services company.
Postponing your purchase until the market stabilizes is the best option. But if you need to buy a car now, be sure to avoid these five common mistakes:
1. Not being prepared
This is a new car buying environment and you may need to reset expectations. Here are the important adjustments to consider before you can hook a car:
Price. Most buyers pay the price of the sticker or more, and “there’s no end in sight for price increases,” says Ivan Drury, senior director of ideas for Edmunds.com, an online resource for auto inventory and dealer reviews. For used vehicles, “the cap keeps rising as new deal prices hit all-time highs,” he says.
Krebs says the average transaction price for a new vehicle climbed to over $ 45,000 in September. And while that number may seem exaggerated, it is not. According to Kelley Blue Book, while Americans bought 7.3% fewer cars in September than in August, the average price for a new car was $ 45,031.