My 09 Civic was recently declared a total loss by insurance, forcing me to navigate purchasing a replacement vehicle at a historically bad time. Is there any way *not* to get screwed by today's car market? What is the best way to limit the damage.
Not really, it's a matter of supply and demand. Today the situation is like it was after the war, too many buyers looking to purchase too few vehicles so prices are going through the roof.
If looking at new vehicles about the best you're going to do is MSRP. Avoid dealers that add thousands in additional charges as additional profit. Dealers have to wait for allocations so you may need to do some traveling to find what you want at a price that not a ripoff.
Because of this situation late model used cars are frequently selling for as much or even more than new ones. Older vehicles are also going for a premium. Because of this all all prices are up. Today a beater that might have cost $1000 a couple of years ago is going for $4000 or $5000.
All you can really do is shop carefully and avoid the blatant ripoff artists out there taking advantage of the situation.
Yes you can avoid being ripped off in this market and still get a good deal, but do keep in mind the definition of a good deal in this market is very different than before. For example with Honda or Toyota targeting msrp plus taxes and fees is considered a good deal. You have to shop around and contact dealerships until you find one that will commit to selling at msrp without any markups or dealership additional items. And your best bet at this is purchasing from an incoming allocation rather than from an on the lot unit. Buying from allocation means having patience; my own Civic got delayed multiple times and arrived 4 months later than it initially was supposed to. Also being open to considering a different color or a bit of different options gives you a bit more leverage and options.
If you can afford it, buy brand new.
Unless you get real lucky and find something with bad cosmetic damage (faded paint/bashed fender panels or doors) but a sound structure and mechanicals.
All the best!