I’ve been a car dealer since 1968 and never dreamed that one day I’d be advising potential customers not to buy a new or used car right away. But, as you know, the COVID 19 Pandemic has changed everything in our lives, worldwide…most of it for the worst, but, counterintuitively, made a lot of money for some businesses…including auto manufacturers and car dealers.
This is the second column I’ve written on this subject and I’ve added a few more pointers for those people that believe they must buy a new or used car today. The good news is that car prices have peaked and can only come down from here. Next month, November, will offer lower prices and December will be even lower. The first quarter of 2022 will see prices back to normal, Pre-Covid. The longer you can postpone your purchase of a new or used car, the lower the price you will pay.
Here are some more tips for those that can’t wait to buy:
Whether you want to buy a late model new or a brand-new car today, price the “other” too. Some used cars are selling today at higher prices than the new ones. Car dealers know you can easily compare new car prices with other dealers, but it’s much more difficult to compare used car prices…no two used cars are identical, like new ones.
- Don’t buy a new car from the dealer’s on-the-ground inventory, because he will charge you much more than if you order the car through that dealer from the manufacturer. The dealer knows that if you refuse to pay the exorbitantly high price for the new car on his showroom somebodywill come in soon and agree to it. He has only one or two of that particular model, and if he sells it for less, he can’t make up that lost profit.
- Late model used cars are selling, as I stated in (1) above, at, and even higher, than the new equivalent. Reliable older cars are priced much fairer than late models. Therefore, they’ll retain their value more and make it less expensive for you to trade it in on late model or new car later.
- Before you “take the plunge” and buy that new or used car today, ask yourself “Are the thousands of dollars I’m overpaying to buy a car today vs 90 days hence, worth it? How expensive and inconvenient will it be for me to repair my current car, use public transportation, take Uber or Lyft, or carpool?
- Paying Costco $65, if you’re not already a Costco member, and utilizing the Costco auto buying program is, by far the single best solution to this problem, www.CostcoAuto.com. If you do buy a new or used car today (against my advice), the Costco price is the “lowest high price” you can get. The smartest move you can possibly make is to contract with the selling Costco Certified Dealer that they will honor the Costco member price on your ordered new car when it arrives from the manufacturer. It’s imperative that you get this in writing. If you don’t, the dealer will sell your car to somebody else at a much higher price.