Experts warn of a shortage of summer cars – is it worth buying?

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It is unlikely news that the pandemic has affected most industries and sellers have been facing shortages of all kinds for over a year now (no doubt the 2020 toilet paper hunger will be infamous for generations to come).

Earlier this year, shortages of sawnwood and machinery drove construction prices skyrocketing – and the auto market could be next.

While many types of consumer goods sold poorly for most of 2021, there were some in the auto market. best months in recent times in April-May this year. Now, between high sales and production delays, the number of new vehicles is noticeably low. And as we see every time the economy is in trouble, the used car market also looks pretty worn out. In times of trouble, people cling to cars that they might otherwise trade in or sell for improvement.

Overall, both new and used car stocks hit an all-time low. And as many of us have learned while hunting for toilet paper, consumers are a little happy when they hear about a shortage.

Knowing that the quantity is limited, you can’t wait to buy new wheels? Well, you should probably think twice before heading to the car dealership.

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This is the market for sellers (cars)

Any basic economics course will cover the basics of supply and demand. When supply is low and demand is high, prices rise. And up.

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Scary seller warning: “Buy now before they’re gone!” it’s usually just a sales tactic. But now it’s true. Stocks are limited, and dealers are less concerned with finding customers to sell than finding stock to sell to them.

What does this mean for you? Car prices are skyrocketing like a rocket, and it looks like this rocket won’t run out of fuel anytime soon.

Getting a loan can be more difficult

The other side of the equation is funding. With prices higher than ever, you will most likely need a larger Auto loan get the car. It may not be as easy as you think.

Banks don’t like risk. When the economic impact of the pandemic became apparent, many banks began to work to limit their risk – and much of limiting risk lies in the parsimony of loans. On the credit card First, we’ve seen issuers reduce credit limits and raise authorization requirements. They took similar actions with loans.

As a result, you will probably need the best credit rating to get a car loan than before. Even if approved, you may not be offered as much of a loan as you would have received in 2019.

And if you are thinking about using personal car loan – well, don’t. Even best personal loans have higher interest rates than most car loans, especially if you have bad credit.

Save now and buy later if you can

Many people go back to their offices or even just go back to stores. If you leave home for the first time in a year and look at your vintage car from Before Times, you might be tempted to celebrate the end of your imprisonment with a new ride.

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Well, you’re not the only one. But the early birds beat you to the proverbial worm. There is a shortage of car inventory here and they have led to overpriced prices. Due to inventory problems, high prices, and wary lenders, this summer could indeed be worst time to buy a car.

If your car is not on its last legs – or tires, so to speak – you are probably better off waiting for your inventory to rebuild before trying to buy a new (or new for you) car. Your savings account I will be grateful to you.

If you absolutely need a new car, be sure to research it. Know the market price of the car before you even get into the batch so you know exactly how much more you are being asked to pay. And if you’re looking for a used car, check with a reputable mechanic if possible. With such limited inventory, you probably won’t be offered the best.

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