Whether you’re shopping for new or used cars, the process is definitely not simple these days. Chip shortages and supply chain problems have depleted inventory in nearly every market and caused prices to rise sharply. A recent report from Kelly Blue Book shows that chip production is heating up, but it might not be enough to alleviate the strained car market.

Chip Shortages Force Changes In Buying New and Used Cars

In previous years, it was a simple task to walk into any car dealership, find the car you want, and then negotiate for a good price. Now, you often have to order a car from the dealership and wait for it to be shipped. Negotiating a better price is pretty much a thing of the past.

Finding used cars can be a hassle too. Many people have turned to the used car market due to the difficulties in the new car market. This has created higher prices across the board, and some in-demand models are becoming scarce or going for even higher prices than average.

The other major change is the increase in buying cars online. Most dealerships are seeing a huge increase in online traffic. After all, there’s not much point in visiting the showroom if the car you want needs to be shipped.

Understanding Why Everything Is High

If you’re in the market for any kind of car right now, you can expect to wait for a while before you can get behind the wheel. Used cars are difficult to find too. Since many people can’t get new cars, they’re hanging onto their old cars. This creates a tough market with high prices.

The key is to be patient and flexible if you’re looking for a new car. It’s difficult for shoppers to get exactly what they want right now. The other key is to act quickly if you find a car that you want. This means you may have little to no room for negotiation. Car sellers know that they hold the advantage. If you don’t buy, someone else will be waiting in the wings. It’s similar to a seller’s market in real estate, which is generally brought on by low inventory.

Return To Normal?

Whether things will return to normal or not remains to be seen. Most industry experts expect a lot of what’s happening right now to stick around for a while. Car prices and car payments are at record levels, and it takes some time for record prices to flatten. Experts don’t think the prices and low inventories are permanent, but they also probably won’t go back to exactly the way it was before. In other words, expect to pay more for cars for some time.

Many dealerships say they’re selling cars faster than they can keep them on the lot, so your best bet is to act fast when you see availability at your local dealership.

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