After stellar sales and incredible profits, dealers are facing a new reality - potential buyers are avoiding their next car purchase. While this makes sense considering how red-hot the used cars and new cars market were during the pandemic, consumer behavior is also changing because of inflation and rising interest rates. After bidding wars, long delivery delays, and cars that sell without certain chips but above MSRP, the market is slowly turning from a seller’s market to a buyer’s market. Naturally, dealerships are the big losers in this new reality.

The results of a Morning Consult survey reiterate the same idea, as they show that 74 percent of Americans who considered buying a new vehicle in February 2022 decided to postpone their purchase. Roughly, 50 percent of respondents mentioned high prices as the reason they delay the purchase. Unfortunately, the situation isn’t rosier for the used car market as Morning Consult found that 71 percent of respondents who considered buying a second-hand car in February, decided to postpone their purchase. Elsewhere, 48 percent of those who delayed their purchase said they did it because of increased prices.

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