Covid has thrown the world in reverse. For a year, fewer people in the world shopped, they bought fewer, electronics, appliances, car and other products as a result, many manufacters in Asia, sharply reduced output. Globaly there is chatter about building new semi-conductor plants in the US, Germany and other countries. At the minumum, it will be two or three years before such a plant could produce a chip.
All over the globe, automakers have reduced or closed assembly plants., with one exception. Tesla, who turned to microcontrollers instead of semiconductors. Microcontrollers, along with developing firmware for chips made by Tesla’s suppliers, helped Tesla to avoid production stoppages that shut down its rivals.
So if you have 50K for your Model 3, you can drive away tomorrow……….
The Price of used cars are often higher than new cars
In the winter of 2014, I bought a 2014 Hyundai Sonatoa with 28,000 miles on it for under fourteen thousand, that car was totaled in an accident in the spring of 2018. I’m considering purching another car next sping. So I went back the Hertz website. Where they are selling a 2019 (three years old) compact Hyundai, Elantra with nearly 60, 000 miles for $18,500. A new 2022, Elantra starts at $20,000.
The used car inventory is so low at some dealerships, they have moved new vechiles in their place.
I can’t prove it ,I wonder if the new/used car dealers playing a shell game. I’m seeing some new cars with less than less than five hundred miles for sale at large used car dealerships selling for thousands more than the same car would sell at a new car dealer.
I was shopping a new 2021, and 2022 Hyundai Sonata Hybrid, the price of the base car is $27,000 and $30,000 for the better equipped midrange SEL models. These are screenshots taken from my phone. Note the higher priced used cars.
NEW 2200 HYUNDAI SONATA HYBRID $27,000
One of the cars I’m considering is a new Hyundai Sonata Hybrid, using my phone, I captured a few ads that made me pause.
NEW 2021 HYUNDAI SONATA HYBRID SEL $30,000
USED HYUNDAI SONATA HYBRID SEL WITH 7,000 MILES $31,500
USED 2021 HYUNDAI SONATA SEL WITH 13,000 MILES $28,000 (NEW $27,000)
USED HYUNDAI SONATA SEL HYBRID 12,000 MILES $29,000
It isn’t all doom and gloom out there. There are bargains out there but there aren’t the popular vehicles. Some automakers websites allow you to check inventory in the region. When shopping on line , pay special attention to the website. For instant if you type in Ford, you maybe directed to other websites that will ask for you email address and phone number , where you will be bombarded with phone calls and offers of cars. Make sure it Ford Motor, or Nissan USA.
After choosing an auto maker, look for Special Pricing or Special offers… The website will inform you of rebates and special financing for specific vehicles .
If you a member of Costco, they have a fantastic new car shopping service with some manufactures offering deep discounts for specific cars .
NEVAH EVAH PUT YOURSELF IN A POSITION WHERE YOU FEEL YOU MUST BUY A CAR FROM A PARTICULAR DEALERSHIP
TAKE CONTROL, BEFORE YOU START YOUR SEARCH
- Financing, contact your bank or Credit Union and apply for an auto loan. Check the Interest rate.compare them to other banks and lending institution. Here you know, how much car you can afford What your payments would be based on the amount financed and the term 24,36,48 or 84 months. THE ABSOLUTE WORST THING PROSPECTIVE CUSTOMERS CAN DO. IS TELL THE DEALER WHAT YOU LIKE YOUR MONTHLY PAYMENTS. FROM THIS MOMENT, YOU HAVE NOW GIVEN HIM ALL THE POWER. HE IS NOW DETERMINING HOW MUCH YOU CAN AFFORD AS LONG AS HE MET YOUR CRITTERA HE HAS MANY LENDERS AT HIS DISPOSAL. LENDERS CAN FINANCE A CAR FOR EIGHT YEARS AND I HAVE SEEN INTEREST RATES AS HIGH AS 34% BEFORE SIGNING ANY CONTRACT, KNOW WHAT THE INTEREST RATE AND THE FINANCE CHARGE……… REMEMBER, ONCE YOU GET HOME, ITS TOO LATE, THE VEHICLE IS YOURS.
- Have a sense of what Car, SUV, your instrested in. Consumer Reports is an excellent source of information. In their Annual Buyes Guide, you can read their test respott along with a predictive reliability reports. The data for the relibabilty comes from the subsubers of the Magaine.
- Dont buy any vechicel before an exstensive test drive, on the streets on the freeway. If its a used car your interested in, having the car inspected might save you thousands. REMEMBER, ONCE THE PAPERS ARE SIGNED AND THE CAR LEAVES THE DEALERS LOT, THE VECHICLE IS YOURS…..EVEN IF!!!
If you are that person, who needs a car immediately there are deals ib
and you are budget minded you might just consider a passenger car.