If you’re in the market for a new, or even a preowned vehicle these days you’ve probably taken notice of the steep prices. In some cases, for popular makes and models they can even go for thousands over MSRP. This is due to the continued shortage of supply – manufacturers simply aren’t able to produce the surplus of vehicles they once were in the past.
The shortage is due to a variety of reasons including the chip shortage caused by the global COVID-19 pandemic, and now the Russian invasion of Ukraine. While crisis like these hopefully will cease and soon, they have permanently chanced the universal approach to vehicle manufacturing and the car-buying experience overall.
In January 2022, consumers paid 12.2% more for a new vehicle than a year previously, according to Car & Driver Magazine. For preowned vehicles, prices soared to an additional 40%!! Experts across the board are predicting that consumers should expect to see a gradual increase in pricing well into 2024 when pricing should begin to level off gradually.
Therefore, it is a good idea to take advantage of Preorder and Custom Order programs at dealerships and place your order now. Yes, you’ll have to wait a to receive your vehicle, but the same vehicle you purchase today could be much more expensive six months to a year down the line.
And if you are a dealership, this is a fantastic time to ramp up the promotions of your own Custom Order Programs to let customers know just how easy it is to place an order for a vehicle that is perfectly tailored to their tastes and requirements.
Escalated car prices are here to stay for the near future. It is highly unlikely we will see pre-pandemic prices again. Whether you are a customer or a dealership, adjusting your approach to and expectations of the buying and selling process is vital.