Car dealers reveal 9 questions you should always ask before buying

• Buying a car is not always a pleasant experience.

• But consumers can overcome it with certain tips and tricks.

• You should always ask about inventory flexibility and incentives.

Most consumers don’t enjoy car shopping — but there are some ways to make the experience a little less painful.

From our conversations over the past several months with dealers and industry analysts from Edmonds, JD Power, Kelly Blue Book, Truccar, Cox and more, we’ve compiled a list of questions consumers can ask before making that big purchase.

What kind of car should I be looking for now?

This can be easy if a buyer knows exactly what they want and need in a vehicle. But if you’re somewhat flexible or just need some pointers on what kind of car you’ll have next, brand, vehicle type, and inventory will all influence your final decision. On the market today, there are many things to keep track of.

Some brands are more expensive now. Like BMW than in the past. Others like Hyundai and Buick are smaller. Reliability It’s another. An important thing to considerAnd brands like Kia and Chevrolet are on the list. Vehicles suitable for families It is another.

Certain vehicles, such as SUVs and pickups, are more expensive, while less desirable sedans and minivans are less expensive.

Inventory, meanwhile, has had a rocky ride. (More on that later.)

What’s happening with new car prices this year?

The epidemic has driven up the price of new (and used) vehicles over the past few years.

mostly, New car prices They’re not as dire as they were during the peak of Covid, but they’re not falling as fast.

of Average transaction price for a new vehicle Last month it was $48,763, according to Kelly Blue Book.

Consumers may want to. Avoid certain models if you want the best deal. You might want to check it out. The best cars for every budget.

How long do I have to wait to get my car?

If a car buyer doesn’t have a lot of special features in mind and can’t blow the dealer’s floor with the vehicle they get that day, chances are, they’ll be waiting months for a car.

The story continues

But this is the new normal in the car buying world. Automakers have learned that every time there’s been a pandemic. Customers are willing to wait and pay more to get the cars they want.. It’s not uncommon to place an order for a new vehicle and have the estimated delivery window be more than six months away – although some do. Customers are waiting for their bets.

Should I worry about chip shortage?

of Lack of chipDue to the pandemic and supply and demand issues, the auto industry has been hampering vehicle production for years.

This supply chain problem is beginning to improve, resulting in 11 million vehicles worldwide by 2021 and 4.38 million by 2022.

Concerns are over. Lack of chip Although automakers are blaming other industry disruptions as the reason for the delays.

But his influence may be less than others Supply chain constraints affect car manufacturers’ ability to deliver..

What else is going on in the inventory?

Generally speaking, Car buying will never go back to normal.. a lot Automakers are trading market share for profits. And Prioritizing high-end, luxury vehicles over entry-level cars. Meanwhile, distributors have learned from demand that they don’t have the same amount of inventory on their lots as they did before the pandemic.

Inventory is improving — meaning a dealer may not sell a vehicle the same day it arrives — but many brands are still struggling with historically low supply.

Local brands like Ford and GM generally have peak days of supply. than other automakers in recent months, Ford at 60 days, GM at 52 days, and Stellantis (the merger of Fiat Chrysler and France’s PSA group) at 68 days in January, Deutsche Bank notes. Other brands are nowhere near those standards yet.

Consumers should be aware of the warnings that may come with inventory. Many of them Car brands with many items They may have higher loan payments than others.

What incentives or other discounts are currently available?

Car manufacturers love how much they can get for their vehicles During the epidemic. That means all kinds of incentives and There were no dealer sales at the end of the year.

But Incentives and other discounts are slowly making their way back into the auto-buying market..

Incentives are still historically low.But they rose 3% from the average transaction price last month, a 10-month high, according to Kelly Blue Book. (This is down from 8.3 percent of ATP two years ago.)

Luxury cars had the biggest boost last month at 6.5%. Vance, on the other hand, had the lowest incentives at less than 1% of the average transaction price.

“Try to take advantage of the incentive pricing that the manufacturers are offering,” Whitney Yates Woods, managing director of the Yates Buick GMC dealership in Goodyear, Arizona, told INSIDER. “Make sure you ask to see if you qualify for it, because everyone is offering something, and you can also negotiate a good deal.”

What about interest rates and financing?

The tide has gotten better for consumers looking for unique vehicles and models.

But it’s shining into the sky. Interest rates are a new hurdle for many car buyers.. This can particularly penalize customers with low credit scores.

“The role of the dealer is not only to sell cars, but to help them get the lowest possible interest rate, and this is both new car dealers and used car dealers. They have the ability to work with several banks.” Chamoun, CEO of digital marketplace ACV said.

“Distributors spend a lot of time understanding the best interest rates and what the different options are,” Chamoun said. “Even depending on the specific car, a bank may offer a lower interest rate on a specific make and model.”

Does the used car market have what I’m looking for?

of Used car market For car buyers, the new market may be more complicated now.

The effects of covid have certainly affected the supply and demand of used vehicles. As a result, fewer car buyers have opted to lease a car in recent years. And many did After the contract ended, he chose to buy a car For fear of not being able to find a replacement in the inventory.

Those dynamics directly affect the types of vehicles on the used car market today. Fewer low mileage, newer cars are available, and pricing is flexible.

In February The price of wholesale used vehicles decreased by 7 percent from a year agoCox’s Mannheim used vehicle value index – which had the biggest increase between two months since 2009 – was up 4.3% from last month.

But you may still be able to find some. Used vehicles with huge discounts.

Should I trade?

Car owners may find that the auto industry has faced a supply and demand crisis over the past few years. Sky-high trade-in values.

Unfortunately for today’s consumers Those days may be over..

The average transaction price of a used vehicle in April 2022 at JD Power was $31,300. That stood at $29,226 last month.

Meanwhile, the transaction price rose to $25,556 in June 2022, but stood at $21,984 in January, down 14 percent.

But don’t fret: Dealers are still looking for a unique trade-in to suit the needs of their used vehicle customers. You may be sitting on A car with a high resale value.

Read the original article on Business Insider