If you're looking for “how to find an affordable used car during car shortage?” Take a closer look at experts’ recommendations as of 2021-2022:
- Consider downsizing
- Get the most profit by selling your current car
- Consider trading in your vehicle
- Research, research, research
- Evaluate leasing
- See if you want to wait
Car shortage impacted us in many ways, and people who are shopping for a new vehicle got hit the most because of the extremely high prices in the used car market. Although it's a challenge to find an affordable used car during this car shortage, there are some simple tips and tricks that automotive experts provide to help you find a successful vehicle without breaking your budget.
This article walks you through a list of 6 tips to implement to help you answer the question “how to find an affordable used car during car shortage?” While it might not be the best timing now to purchase a used car, if you are really in clear need of a vehicle, these tips can help you find an affordable car easily without getting scammed.
What is the car shortage, and why is it happening?
Before we dive into the details about “how to find an affordable used car during car shortage?” let's step back and get an idea about the car shortage and why it is happening.
If you haven't already read all over the news, there has been a significant car shortage worldwide due to the lack of supply of microchips. Every car requires between 1300 and 6000 microchips depending on the vehicle's type and brand, along with technology. During the COVID-19 pandemic, a significant drop in vehicle production was experienced, accompanied by another drop in the microchip supply. As the economy is relieving and people are going back to work, there is still a lack of microchip supply, impacting how many vehicles are produced every year.
That's why when you walk into many of the dealerships, you'll be surprised and ask yourself why there are no cars at the dealerships?
With the car shortage, new vehicles were impacted, and the used car market got impacted significantly. That's why you'll notice that cars prices are now skyrocketing and approaching significantly high numbers than before. Therefore, many shoppers are hesitant about buying use or brand-new vehicle.
How to find an affordable used car during a car shortage? A 2021-2022 review
While it might not be the best timing for purchasing a new or used vehicle nowadays, experts have a different opinion. However, many automotive specialists across the nation recommend that this might be the best timing to buy a new or used vehicle. This is because there's no clear trend on when this car shortage will end, and that's why there might be instances where the prices are going to climb up much more.
Keep in mind that experts recommend buying a car only if you need one. In other words, if you're planning to upgrade to a different vehicle without really needing to switch to a new one, you might not necessarily need to go through the crazy high prices.
While it's recommended for people who need to shop for their vehicles nowadays, there are some restrictions, and not every vehicle is recommended to be purchased. In other words, there are some vehicles available in the used car market that are not worth it and might not be suitable for you to buy. Thus, before making a final purchase decision, you must perform all necessary research to ensure that you're not wasting your time and money.
Let's take a closer look at some automotive experts’ recommendations on “how to find an affordable used car during car shortage?”
1. Consider downsizing
Many current shoppers are hoping to purchase the best SUV or probably a pickup truck. However, some experts indicated that these larger vehicles are increasing in current prices due to the microchip shortage more than smaller vehicles.
For example, if you're looking to purchase a 2018 Ford F-150, you'll find that it's at least $10,000 more expensive than a model designed three years ago.
Therefore, one of the best strategies to find an affordable used car during car shortage is downsizing and considering purchasing a smaller vehicle like a crossover SUV or probably a regular sedan car. Of course, this might not be the best option you would be hoping for, especially if there is no microchip shortage, but if price is one of your concerns, you might want to change your strategy slightly.
2. Get the most profit by selling your current car
Although the current car shortage might not be the best time for car shoppers, it might be the perfect moment for anyone who would like to sell a used car. That's why if you are old vehicles not in good condition, you might get the most money out of it nowadays.
Therefore, before purchasing a new or used vehicle, consider making the most money out of your used car. There are tons of potential buyers out there looking for used vehicles. The vehicle that you thought wouldn't make you any money a year ago is now a treasure!
According to experts at consumerreports.org, “If you need a car right now, they’re expensive, and unfortunately, all signs point to prices continuing to increase,” Woolard says. “It’s a great time to trade or sell a used vehicle—used vehicles are going up in value, and that doesn’t happen that often.”
Consider shopping around looking for the best quote to get the most money out of your car. However, if you are ready to sell your vehicle and don't want to deal with a lot of hassle, you might want to reach out to cash cars buyer who is rolling to move your car within one to three days only and will pay the top dollars your vehicle can make around your area! All it takes you is to give us a call at 866-924-4608.
3. Consider trading in your vehicle
Like the previous point, many experts recommend that this might be the best timing for trading in your old car. Typically, used car prices are expected to climb up during the chip shortage but not all the time; used car prices are increasing.
Typically, trading in the vehicle might not be the best option during normal days. However, during the chip shortage, dealerships are willing to pay much more for your old car considering this car shortage. Therefore, if you tried to trade in the same vehicle a couple of years ago, you would have ended up with a much lower price than now.
You want to start chip shortage impacted certain dealerships more than others. For example, a local dealership in reading California experienced a significant reduction in the number of vehicles on their lot. A recent article published in actionnewssnow.com highlighted some numbers indicating, “We are right about 60% of our normal inventory, normally have a little over one hundred cars, and right now we are a little over sixty and so definitely short on what we like to have here.”
However, no matter how much the dealerships are expected to pay you, it will not be the same amount of money you will get from selling your car privately. However, many drivers prefer to sell their vehicles to dealerships rather than dealing with old headaches by selling their vehicles to nonserious buyers through classified websites.
Experts at consumerreports.org indicated, “regardless of prices, the bottom line is that you should make a deal when the time is right for you. If it’s now, you can leverage your trade-in to get the best deal possible. However, if you decide to wait, know that future pricing is hard to predict, especially when global supply chain problems plague automakers.”
4. Research, research, research
We can't advise you more about spending as much time as possible when shopping for a used vehicle. There are tons of ways to shop for a used car online and offline, and the more time you spend, the better the deal.
Be careful about what you shop for and understand all the risks associated with each approach you're planning to pursue. For example, if you decide to go with dealerships, you need to understand that the other ships are now in a situation where they are looking for the most profit, which means that you might not find the best deals out of dealerships.
You can also try finding a car on online platforms like Craigslist or eBay motors. However, those platforms also involve a lot of risks that have to do with scamming. For instance, a certain seller might ask you to use a third-party account to pay for the vehicle and then never send you the car, and you lose your money.
There are also other available platforms online that you might not be aware of, like the larger websites, including:
Every website has a certain policy, and you'll need to go through each policy and understand what benefits you get from finding a vehicle through this website. For example, Carvana provides you with a completely online method for buying a vehicle without needing to get in touch with any seller, which might be the best approach for those who are hesitant about meeting face to face during the COVID-19 time.
Keep in mind that some memberships might be paid, and some websites are more expensive than others. Still, they might provide you with additional benefits that include safe transactions and other features that might benefit you if you don't have the best previous experience buying a used car online.
5. Evaluate leasing
If you think that buying a used car is not the best time for you now for any reason, you might want to consider leasing. However, keep in mind that leasing is not the top and best financial approach when dealing with high cars prices. However, it will not involve very high monthly payments.
It might be the best time now to try your vehicle of choice and see if you like it. Driving it for an extended time helps you determine whether it's the best option or not. The monthly payments will not be super high, but you'll still have to make a down payment.
Before you move ahead to leasing during a car shortage, you must evaluate the entire situation. In other words, leasing does not only involve down payments and monthly fees. It might have some other fees that you need to be aware of and read the contract carefully. Then, calculate the total costs and compare them with buying a used vehicle to see whether this works for you or not.
Unsurprisingly, car leasing prices also climb up during the car shortage, but it's not as high payments as purchasing a car that might not be worth it.
6. See if you want to wait
As we indicated earlier, if you're not really in a critical need to buy a new car, you might want to wait for a year or two. There's no clear expectation about when the car shortage will end, but things will not last this way forever and hopefully, car prices will drop.
It is critical to note that cars prices may also jump a little more during the next year because some experts are not very optimistic about the car shortage to end in 2022 or 2023. Thus, it's very unclear expectations, and things could go either way.
During the car shortage, buying a used car is an extremely challenging task, especially if you're looking for an affordable car. However, it's not an impossible task because automotive experts provided six recommendations on buying an affordable car during car shortage?
These recommendations include downsizing the vehicle, getting the most money out of your current car, performing thorough research, considering leasing, waiting for some time, and others.
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