Car prices are grossly inflated due to poor availability, which is due to the worldwide shortage of computer chips. Scotty's advice to wait until the bubble collapses is sound, but I don't have a choice. My car's PCM went out, and repairs will cost thousands more than the vehicle is worth. I have to have another vehicle, now. We have long bought used, to avoid that initial depreciation of new vehicles; this time, I don't think we can afford a vehicle that is only two years old and still under warranty.
I re-visited Honda dealer a couple days ago, to see less than half the inventory they had a week prior. This shortage is very real and snowballing. Even the giant online inventories are shrinking, while prices continue to climb.
So what's my question? Well, those high prices are going to cause us to incur more debt than we should. I realize it is absolutely critical we choose the right car, not something that will leave us upside down the moment we drive off the lot—something that will be INCREDIBLY dependable, at least while we are still making payments! I should stick to Toyota/Lexus and Honda/Acura. I prefer SUVs, but are SUVs prices inflated to the point that a sedan is the smarter choice?
Also, I've not shopped a vehicle for years. I have no perspective. How do I find out what prices "should" be, so I know how much they are being inflated by any particular dealer? Those online outfits, who seem to have the best inventory right now, worry me the most, because I don't know anything about test driving and inspecting their inventory before purchase. I realize private individuals are a great resource, but my Facebook experience indicates half the sales are scams (maybe I'm way off). I can finance through Navy Federal Credit Union and use their car buying service, provided by TrueCar; is TrueCar a smart way to shop?
Ultimately, we have to pay what we have to pay. I could still use some pointers to avoid making a bad decision. Thanks in advance!
The used car market is crazy right now. Try to find deals from private individuals or estate sales.
No matter what you buy, have it checked thoroughly by a professional mechanic, before purchase -
https://carkiller.com/scottykilmer/qa/used/
All the best!
Yes, it is. I can see prices climbing daily. I'd like to nail something down this weekend, as I've read this chip shortage may drag on for a year or two.
I've not bought so many cars that I know how to go about getting them checked out prior to purchase. Dealers won't even let you test drive their cars alone around here. Taking it for a few hours to get a mechanic to look it over? I don't know quite how to swing it.
Thanks for your reply!
If that’s the case, test drive it to the best of your ability like in the link above. Try to buy it from a place that has a return window of a few days/weeks. That way, if they won’t let you get it checked out before you buy it, you can get it checked by your mechanic after purchase, and still return it if he/she says it’s a clunker. But get their refund policy in writing!
Buying a car without letting you test drive it is a BIG red flag. They should atleast let you drive it around the block/their lot where you can test the basics like acceleration & braking. I mean clunking suspension parts can be fixed or replaced, but a bad engine or transmission is an immediate deal breaker.
Many of the new cars still have very low financing rates.
6% under sticker price is about all you will get from Honda or Toyota dealers these days.
I already have financing in place, and won't have to play dealer games. My larger concern is dependability and getting the car checked out prior to purchase.
The prices of a new car and a used car 2-3 model years apart is currently 2-3k different where I live. If it's the same where you live and you desperately need a car, buy a brand new one.
I'm just not ready to incur the debt. I'm going to have to go with something older and , hopefully, dependable. Thank you!
that’s the market. You gotta do what you gotta do.
Amen. I get it.
SUV and truck prices are always inflated, even when new. That's why you see the giant rebates on them. Their popularity allows dealers to drag people over the coals and, strangely enough, people line up to be next.
I would suggest at least looking at sedans and seeing if there's one you like that could save you a bunch of money. Be smart with your purchase and stick to Honda/Toyota for reliability and resale later down the road. If you like an SUV, I'd look at a RAV4 or CRV. Maybe even a Highlander.
Be safe out there and best of luck.
Personally, I don’t fault people who need to buy a car. If you can wait it out, wait it out. But if you can’t, you gotta do what you gotta do.
I'd absolutely have to have something before school starts back up in August, but I don't really want to wait that long. These prices are climbing every day, and inventories are getting smaller.
Thanks for your reply!
I prefer SUVs, but are SUVs prices inflated to the point that a sedan is the smarter choice?
If you find them reasonable cheaper than SUV, why not?
