How is the market for new cars today?

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tc101
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How is the market for new cars today?

Post by tc101 »

How is the market for new cars today? Is there more choice and/or better deals than a year ago?

I was going to buy a new car a year ago but decided to put it off because of the lack of available cars, hence the lack of choice and higher prices. Has it gotten any better than a year ago?
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jebmke
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Re: How is the market for new cars today?

Post by jebmke »

Based on my thrice weekly drive past three dealers on the way to my gym, I'd say not much has changed. The lots look empty. I also get periodic calls from one dealer asking if I would like to sell my 2008 RAV4. When I ask them what they have to trade I get a lot of happy talk that usually ends in "you can order a new car" based on the fairly limited models they have on hand or can get a hold of immediately.
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Volando
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Re: How is the market for new cars today?

Post by Volando »

It probably depends on what you’re looking for. We were able to find a new Honda Pilot without much difficulty and under MSRP. On the other hand, we were also looking for a Toyota Sienna and were not able to find any. All the dealers had them on a wait list and over MSRP.
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tc101
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Re: How is the market for new cars today?

Post by tc101 »

I just read this is "The Economist"
Panic buying amid last year’s global chip shortage has left many carmakers and manufacturers of business hardware with inventories overflowing with silicon.
https://www.economist.com/business/2022 ... y-meltdown

That indicates to me that the shortage of cars based on the shortage of chips is ending.
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FrugalConservative
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Re: How is the market for new cars today?

Post by FrugalConservative »

I'm in the market for a new family suv. Nothing has changed as of yet ( still lack of inventory, dealer addon, over msrp, etc). Received a call from a local Toyota Dealer two weeks ago. They have a new 2023 Sequoia. He said they are only adding $5k to the msrp and said I should jump as that is a steal. All in 78K. Suffice to say, I said heck no.
indexfund56
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Re: How is the market for new cars today?

Post by indexfund56 »

I’d highly recommend trying the Costco Auto buying program. I had success using it back in March to secure a car at slightly below MSRP. Other dealers in the area all had markups. Waited about six weeks for the car (Honda CR-V) and no surprises when I went to finalize the transaction and pick up the vehicle. Also worth noting that this dealer didn’t have any of these vehicles on the lot and could have very easily marked up the price, but they honored the Costco price. If you are a Costco member, it is worth a shot.
Last edited by indexfund56 on Tue Oct 18, 2022 12:32 pm, edited 1 time in total.
ktdintex
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Re: How is the market for new cars today?

Post by ktdintex »

I see signs that the market is slightly better, but it really depends on the specific model you're shopping. I've been looking for an F-150, and you can get a pretty good discount from MSRP if you're willing to place an order and wait at least a few months. The Ford dealers don't even require a deposit.
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Re: How is the market for new cars today?

Post by Jack FFR1846 »

It depends on the maker and even the model. Stellantis (Chrysler) appears to be the biggest in getting inventory. BMW is also recovering well. Subaru is also said to be recovering fast.

When you go to the website of a dealer and hit new cars, it will give you a number. But peruse the pages of cars and look for the "in transit" tags that may be on lots of cars. I went to my Subaru dealer who has 93 new cars. Of those, taking 11 pages, less than 2 pages are actually at the dealer. The rest are "in transit". So that's certainly better than the local Cadillac dealer had 2 months ago when I test drove a car. 5 new cars on the lot.

I have also found that when a new delivery truck arrives, even the 5 car Cadillac dealer who had a CT4 I drove that was "over MSRP" became "at MSRP" when the truck arrived with more cars.

On the chip buying side, we are seeing some customers asking about reducing quantity in future NCNR orders. Lead times are still over a year, but if orders can be diverted to another customer, that could reduce lead times. As far as car availability and prices, it's going to vary all over the map. A local exotic used car dealer bought up a bunch of new cars about 9 months ago. So if you want a Porsche GT car or a Maserati MC20 or GT Mercedes or Lotus Evora, they have them with under 1000 miles. But most are from $25k to $200k over new MSRP. Their "value" is that if you want a car NOW, you can buy one.
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baconavocado
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Re: How is the market for new cars today?

Post by baconavocado »

The car dealer lots I drive by regularly are still empty, with the exception of the Tesla lot. I've been told that the Teslas have all been pre-ordered and are waiting for their owners to pick them up.

I'm also wondering if high gas prices are having any effect on the type of cars people are buying.
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lthenderson
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Re: How is the market for new cars today?

Post by lthenderson »

tc101 wrote: Tue Oct 18, 2022 11:57 am How is the market for new cars today? Is there more choice and/or better deals than a year ago?
Just went through this last week. We could pick any car we wanted and it went on a waiting list that got submitted to the manufacturer and we may or may not get the exact vehicle we want sometime in the upcoming year. In our case, we are wanting a Toyota RAV4 Prime. Toyota, as of September, doesn't allow you to spec out cars that get submitted on the wish list and don't require any sort of down payment. Our local dealer gets their allotment (6 cars a month in our rural part of the world) and they are what they are. Since we are the only Prime people on the wish list, we get first choice whenever any Prime is delivered as part of their allotment. If it isn't what we want we can pass and it gets sold to someone else. If we want what was delivered, we put $500 down to secure it until things like insurance paperwork and financing is completed.

As far as pricing goes, last month they were going for several grand over MSRP but the dealership was sold and the new dealer only sells at MSRP (less the $500 deposit) for the time being. According to them, this is probably the way it will be for the next 18 months according to what Toyota is telling them.
Johnny Thinwallet
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Re: How is the market for new cars today?

Post by Johnny Thinwallet »

We finally bought our new 2022 Accord last week. This was a car we ordered and put a deposit down back in late May so a 4.5 month wait. We paid MSRP for the Accord. No market adjustment. Some dealers required a market adjustment ranging from $1k to $5k, and they didn't get our business. We bought from a dealer 30 miles away that offered it to us at straight MSRP.

We debated trying to wait it out, but the 2022 Accord is replacing our old 2007 Accord with 192k miles on it. It is likely that the 2023 Accord will be a redesign of a new generation, and for the most part I really prefer to avoid the first 1-2 years of any redesign. Doing so would push the wait out to 2025, at which point the 2007 Accord would be 18-years-old and have 225k+ miles on it. My wife didn't like that idea.

I also figured the MSRP is only going to go up on new cars so I'd probably be paying more in 3 years for a new car than I am now. Maybe I'm wrong, who knows.

As far as the 2007 Accord, I'll be getting ready to sell it in about a week. A neighbor has been patiently waiting for 3 months, and we've already agreed on a price. Maybe she'll come through. If not, then I'll just list it on FB Marketplace and see what happens. But the price I'll be selling it for is probably $1,500 higher than I'd get in a normal car market. So the high prices works both ways.
Last edited by Johnny Thinwallet on Tue Oct 18, 2022 2:58 pm, edited 1 time in total.
DoubleComma
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Re: How is the market for new cars today?

Post by DoubleComma »

We have been looking for a new SUV, a few makes/models are acceptable, but we have specific configuration requirements. We are not in a rush and not willing to pay a market adjustment/dealer mark up. We started to looking in the spring, at the time every dealership was pre-selling vehicles they had on order with a $10k market adjustment. They would accept an order, but wanted the adjustment still. We passed.

Last month we started getting calls from several dealers offering in-transit vehicles with no or very little market adjustment; but the configurations were wrong. At this time they aren't willing to accept orders, siting various things like the factory switch over from 22 to 23 or some other excuse. We believe they aren't interested in special orders because they want to sell their inbound 2022 to maintain value before allowing a 2023 to be ordered.

As recent as yesterday we were offered 2 vehicle at $500 below MSRP...again wrong configuration.

We expect in the next few weeks, maybe a month, we will be able to special order exactly what we want and get it for MSRP or lower.

Anecdotally I would say the market is softening, but still expect it will be a long time before we see pre-pandemic sales -- if we ever see them again.
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Re: How is the market for new cars today?

Post by firebirdparts »

You can see what's out there from your computer. Not much effort.

Around here there are some new cars available. I haven't taken a poll, so I would presume at about MSRP but of course ask.
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tc101
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Re: How is the market for new cars today?

Post by tc101 »

I just did a google on "are car prices going down". There are lots and lots of articles about this, all written in the last month. You can read all you want about it.

JP Morgan Research says:

New car prices are rising due to an ongoing chip shortage and increased raw material costs. In the U.S., the average price of a new vehicle was up 6.3% in the last year.

This has fueled demand for used cars. Average prices were up 42.5% in September 2022 vs. February 2020.

Used car prices have likely peaked, but new car prices are set to remain elevated through end-2022. In 2023, prices are expected to decline by 2.5% to 5% for new cars and by 10% to 20% for used cars.
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flyingaway
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Re: How is the market for new cars today?

Post by flyingaway »

Just looked at our local Toyota dealer's web page, they added $2,000 to the MSP for RAV 4 and call it "dealer's adjustment".
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snackdog
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Re: How is the market for new cars today?

Post by snackdog »

Plenty of Toyota Corollas for sale near me. 2023 about 2% over MSRP. 2022 discounted.
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Re: How is the market for new cars today?

Post by smitcat »

Many of the new cars that are advertised as 'in transit' are really sold vehicles - they automatically populate the car dealers' websites until the transaction is completed.
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Frustrating

Post by Bogle7 »

After waiting 13-1/2 months, we bought our new VW ID.4 home yesterday.
MSRP + $250 market adjustment.
We were on vacation in Europe when it arrived at the dealer 10 days ago and the dealer tried to sell it to someone else.
Our auto broker prevented that. He earned his $600 fee for that action and for getting us a very good trade in value for our 2007 Audi.
Last edited by Bogle7 on Fri Nov 25, 2022 10:38 pm, edited 1 time in total.
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tc101
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Re: How is the market for new cars today?

Post by tc101 »

Our auto broker prevented that. He earned his $600 fee for that action and for getting us a very good trade in value for our 2007 Audi.
What exactly does an auto broker do and how do you find a good one?
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MtnTravel
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Re: How is the market for new cars today?

Post by MtnTravel »

My observation is that things are changing. I was looking at a Volvo last year, and there was nothing in stock, and the few CPO models they had on the lot were priced higher than their newer equivalents. We stopped looking, but now, based on the emails I keep getting, prices have calmed down (if not dropped) and there are many more CPO models available at reasonable prices.

Not sure about new models though... They may still be backordered.
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Auto broker value

Post by Bogle7 »

tc101 wrote: Thu Nov 24, 2022 12:04 pm What exactly does an auto broker do and how do you find a good one?
1. In a normal market, the broker gets the car at the fleet price and the adds his/her fee so you pay less than haggling with dealer. This is not true today. Fleet price discounts are non-existent as far as I a tell.
2. The broker removes haggling with dealer.
3. The broker can arrange test drives of various cars without you having to visit multiple dealers.

I found a good via Yelp.
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Re: How is the market for new cars today?

Post by ChinchillaWhiplash »

Not good. Pre-orders and in-transit. Not many in stock and on the lot to choose from. And manufactures are dropping “cars”. Ford only has the Mustang now. Lincoln doesn’t make any cars anymore. Some other companies probably have limited models of cars down to a few with lots of crossover and SUV options to choose from. So the market for “cars” is going down the toilet.
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Re: How is the market for new cars today?

Post by Planner01 »

Today I bought a 2023 Silver RX 350. I paid $750 over MSRP, which was $52,250 and I paid $53,000. I had them include window tinting, and two years of service. Negotiation took about 30 minutes.

The dealership only had three 2023 RX in the parking lot. A copper color, dark green and the silver. The silver one they had just brought in the day before from another dealership, so it had 42 miles on it. It has many cool options, which I like.
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Re: How is the market for new cars today?

Post by JamesG »

Also be aware that since mid 2020, some carmakers have removed vehicle features in response to the chip shortage. So, even though volumes might be recovering, it might pay to check that the car has not had pre-covid tech removed.
Eg see: https://www.carexpert.com.au/car-news/r ... p-shortage
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