The current market for new and used cars is what they call a seller’s market due to high demand and low inventory as a result of disrupted supply chains. In the past, customers would be able to haggle and negotiate a lower sales price. Now, because of the low inventory, customers would be lucky to pay the Manufacturer Suggested Retail Price (MSRP) let alone find the car that they are looking for. Buyers should not be too discouraged though, as they have other factors working for them. To start with, while the prices may be less discounted, financing rates remain low which can allow buyers to save significant interest costs over the term of the loan. Many dealerships still offer 0% to 0.9% APR for qualified buyers. In addition to the low financing rates, dealerships may be offering premiums on trade-in values so that they can re-sell the trade-in to other customers at even higher prices to meet the current demand for used cars.
While the market for cars may be high now, it still presents opportunities for buyers to potentially receive a higher trade-in value for their current vehicle while obtaining a low cost of financing too. If you are in the market for a new car, we recommend doing your research on your trade-in value so that you are compensated fairly and check to make sure the car that you want is available.