January 8, 2022 – An ongoing global shortage of microchips – key components needed for today’s autos to operate – that began in 2020 continues to slow down manufacturers’ production of new vehicles, which has translated into demand outpacing supply.
Part of the reason for record transaction prices is that automakers have slashed their discounts because, generally speaking, they don’t need to offer big incentives to sell cars right now.
If you have flexibility in the timing of your purchase and are not finding what you want on dealer lots, it may be worth ordering your car. Additionally, interest rates are generally low right now. The demand for used cars has pushed trade-in values well above normal. You may be able to negotiate on the value assigned to your trade-in.