If you’re planning to buy a vehicle, you may be wondering if now is the right time to do so. In recent years, events around the world have had a significant impact on the prices of new and used vehicles. However, this doesn’t mean that you should wait until later to purchase your dream ride. If you know where to shop, you can still find a well-priced vehicle that suits your budget and needs. Let’s find out whether you should buy a vehicle now and what you can do to get a great deal.
Disadvantages of Buying a Vehicle Now
The bad news for car buyers is that the prices of new and used vehicles are considerably higher than they were a year ago. According to the Consumer Price Index Summary from the United States Bureau of Labor Statistics, new vehicles were 12.2% more expensive in January 2022 than they were in the same month in 2021. As for used vehicles, prices rose 40.5% year-over-year. Edmunds reports that about 82% of buyers paid more than the manufacturer’s suggested retail price for a new vehicle in January, up by 79.2% from a year ago.
One of the reasons why the prices of new vehicles have risen so dramatically is because of a worldwide semiconductor shortage. This has led to a limited supply of microchip processors, which automobile manufacturers need to produce new cars. The chips control a wide range of functions and features in a modern vehicle, such as the window motor and the infotainment system. Experts say that the semiconductor shortage is the main culprit behind the current lack of new vehicles. COVID-19-related lockdowns and the Russia-Ukraine war have slowed the production of other automotive parts, which further worsens the problem.
Fuel-efficient vehicles are in especially short supply. High fuel prices have pushed many American car buyers to reconsider their choices. As revealed in the Brand Watch reports from Kelley Blue Book, fuel economy has become a more important consideration for car shoppers than at any point over the past five years. Nevertheless, dealerships are now experiencing a shortage of hybrid vehicles, small cars, and compact crossovers, which are exactly the type of fuel-efficient vehicles many Americans want to buy.
Besides increasing car prices, the limited supply of new vehicles has also resulted in a longer wait time. On average, car buyers need to wait four to 12 weeks to receive the vehicles they’ve ordered, according to Forbes. If you’re planning to buy a highly sought-after model, the wait time can be much longer than that.
With the scarcity of new vehicles, many car shoppers have been turning to the used car market, inflating prices in the sector. Kelley Blue Book reported that the average price of a used vehicle went up to $1,100 in April 2022. However, it dropped slightly in the following month, which is a sign that the market may be leveling off.
Advantages of Buying a Car Now
Although new and used vehicles are now costlier than a year ago, it doesn’t mean that you should give up on purchasing your dream car. The spike in car prices can be a double-edged sword. In an effort to meet customers’ demand, dealers are trying to acquire as many used vehicles as they can and paying high prices for those cars. So, if you have a vehicle to sell or trade in, you can expect to get top dollar for it. Currently, pre-owned vehicles that range from two to five years old are the most sought-after.
While you’ll probably have to pay more for your next vehicle, it should be encouraging to know that the car will likely last longer than your current one. Due to advancemenst in automotive technology, newer vehicles tend to suffer fewer problems than their older counterparts. Their improved reliability and longevity translate to better value for your money. In addition, they come with high-tech features that can make driving more enjoyable and safer.
Why You Should Shop for a Used Car at New Jersey State Auto Used Cars
It’s important to note that the prices of vehicles can vary considerably from one dealership to another. Even though car prices have generally increased across the country, you may still be able to get a good deal if you shop at the right dealership. If you’re thinking of buying a used vehicle in or near Jersey City, New Jersey, consider coming to New Jersey State Auto Used Cars to find your dream car.
While many used car dealers are facing a shortage of used vehicles, New Jersey State Auto Used Cars has managed to consistently maintain a well-stocked inventory. We have an extensive and comprehensive selection of pre-owned vehicles to meet the needs and preferences of all kinds of drivers, including small commuter cars, family-oriented SUVs, luxury vehicles, high-performance cars, and work-capable pickup trucks. So, regardless of your budget and lifestyle, you’ll find your perfect ride on our lot.
Even with the drastic increase in car prices throughout the country, our dealership is able to provide great used vehicles at very reasonable prices. If you compare our prices with those of other used car dealers, you’ll know that it’s hard to find a better deal elsewhere. We also offer discounts on certain models, which can help you save even more. Have a vehicle to trade in? Rest assured that we’ll pay top dollar for it.
Another reason why you should buy a used car from New Jersey State Auto Used Cars is because of our trusted reputation for selling only high-quality pre-owned vehicles. No matter which model you choose, you’ll have peace of mind knowing that you’ll drive home a problem-free car. This is because all our vehicles are professionally inspected and reconditioned to ensure they’re in excellent condition. Furthermore, they come with a complimentary vehicle history report as a form of quality assurance.
In these uncertain times, New Jersey State Auto Used Cars has become the go-to place for Jersey City drivers who are looking for good deals on reliable used vehicles. Contact us today to schedule a test drive.