In a market where inventory is scarce and prices are high, car shoppers may feel like they’re getting an especially big bait-and-switch on pricing than usual when purchasing a vehicle.
In the days before the spread of the influenza pandemic, consumers used to be able to find a seller who would agree to sell a car for at or below its Manufacturer’s Suggested Retail Price (MSRP).
So ongoing supply chain issues mean that it is now more common for sellers to price vehicles by the MSRP instead of advertising a discount to get rid of outdated inventory.
This summer, the Federal Trade Commission implemented new guidelines aimed at preventing consumers from inadvertently spending more than planned.
Experts urged consumers to practice patience that summer, noting that a great deal of research is vital for good results.
Here’s What Shopping For A Car Will Be Like In 2022
Brian Moody, the executive editor at Auto trader, noted there are a few steps you can take to avoid paying above the odds for a car or having to wait months to have it delivered.
Don’t take an interest in the most popular types of vehicles, or in the most popular cars.
That would include full-size pickup trucks and full-size SUVs. Smaller compact cars and sedans are less accessible and costs typically a little more at MSRP.
Those that want to avoid bargaining or being offered add-on packages should look for dealerships that have launched “no markups,” auctions.
Don’t Shop Until You Actually Have A Car To Buy
Another very good piece of advice is to do a lot of research before you head to a car dealership.
On the World Wide Web, you can send mass emails to different dealerships in the same area; examine their inventory online, and so on.
You’ll be able to compare and contrast these products, side by side, to see which one is the best choice.
Before buying, consider which advantages you need, as opposed to relying solely on a salesperson’s recommendations.
If you’re willing to be flexible on certain things, like being willing to accept a couple of colors instead of choosing a single, you will be able to buy an automobile at a more reasonable price than if you’re set on a particular make.
You will have to order the car you want, and that can take six weeks.
Making The Most Of Your Connection With An Expert
Moody also recommends finding an “in” at the establishment or store you’re shopping at, so you can learn the secrets of the marketplace and find an insightful advisor.
Find a local business in your area that’s willing to give you a quote. Email the staff at that business or local dealer with questions about warranties, maintenance, or repair.
Moody stated that if you’re leasing a car and the lease will soon expire, you should just buy that vehicle instead of attempting to trade it.
Will New Car Prices Drop? Here’s What Experts Are Saying
The average new vehicle price in the U.S. hit a new record in July, according to Kelley Blue Book data.
The average transaction price gained in July to $48,182, surpassing the previous high of $48,043 set two months later.
It is a sellers’ market, said Rebecca Rydzewski, research manager of economic and industry insights for Cox Automotive, in an August news brief.
New-vehicle inventory levels are higher than last year, but they continue to be historically low, which is keeping new-vehicle prices elevated.
We anticipate that new car prices will remain stable in the long run. However, car prices will vary model by model and brand by brand, according to Moody.
What New Rules Is The FTC Proposing?
The FTC has proposed a rule to ban junk fees and bait-and-switch advertising tactics that can plague consumers throughout the car-buying experience.
“As auto prices surge, the Commission is seeking to eliminate the tricks and traps that make it hard or impossible to comparison shop or leave consumers saddled with thousands of dollars in unwanted junk charges,”
Ban bait-and-switch claims: The proposal would prohibit dealers from making a number of deceptive advertising claims to lure in prospective car buyers.
This deal deception can include the cost of a vehicle or the terms of financing, the cost of any add-on products or services, whether financing terms are for a lease, the availability of any discounts or rebates, the actual availability of the vehicles being advertised, and whether a financing deal has been finalized, among other areas.
Once in the door or on the hook, consumers face the fallout of false promises that don’t pan out.
Ban fraudulent junk fees: The proposal would prohibit dealers from charging consumers junk fees for fraudulent add-on products and services that provide no benefit to the consumer (including “nitrogen-filled” tires that contain no more nitrogen than normal air).
Ban surprise junk fees: The proposal would prohibit dealers from charging consumers for an add-on without their clear, written consent and would require dealers to inform consumers about the price of the car without any optional add-ons.
Require full upfront disclosure of costs and conditions: The proposal would require dealers to make key disclosures to consumers, including providing a true “offering price” for a vehicle that would be the full price a consumer would pay, excluding only taxes and government fees.
It would also require dealers to make disclosures about optional add-on fees, including their price and the fact that they are not required as a condition of purchasing or leasing the vehicle, along with disclosures to consumers with key information about financing terms. Read more articles on dollarnex.