The unleashing of pent up demand paired with low inventories due to the chip shortage and a COVID-19 manufacturing hangover has created a very hot car market. Cars are so hard to come by some car shoppers are willing to pay $5,000 over sticker price, according to Cox Automotive.
Kelly Blue Book, which is owned by Cox, asked folks who are planning to buy a car this year what compromises they were prepared to make to get a car in a market where inventory is currently down 42 percent from April 2020 levels. They found that 87 percent of buyers are aware of the difficulties facing the industry. But as we’ve seen with the recent fuel crunch in the Eastern U.S., people sometimes go into panic buying mode when they think even worse scarcity is on the horizon. About 60 percent told KBB they won’t delay purchasing a new car, no matter the costs. That’s certainly good news for dealers.
Read Article