Five Trends That Made 2022 the Toughest Car Market in Decades

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Unfortunately, if you’ve had the chance to buy a new or used car this year, chances are you’ve faced a level of frustration and sticker shock you’ve never experienced before. A roundup of the major trends that have made the worst in .

inventory problem

Automakers rely on global supply chains for parts and components. A major pinch point was the lack of availability of semiconductors in sufficient quantities to automakers. (Microchip) is used to complete the manufacturing process. Modern automobiles are complex, with various systems running with a significant amount of computing power. W.You can’t build a car without those chips.

This has created a situation where some brands have curtailed production or, in some cases, closed factories entirely until they have enough parts to build their cars. If you can’t produce vehicles, your local dealer lot will start looking like a ghost town. Shoppers looking for their preferred model often find listings that claim the car is available, only to find out later that most of the units advertised are pre-sold.

When there is demand even if supply is insufficient, This creates a situation that really puts consumers at a disadvantage.

full markup

Some dealer markups above MSRP are to be expected when it comes to limited-run sports cars and high-profile new models like the Bronco. However, buyers looking for “regular” cars like the Honda Civic or Toyota RAV4 have found that “suggested retail price” deals are rare and often expected to pay a premium. rice field. According to Edmunds data, 82% of new car buyers paid more than the sticker price.

It wasn’t just popular cars that got the markup treatment, even budget models. Like the Nissan Versus, subject to an addendum 30% or more of MSRPAutomakers are beginning to notice growing customer dissatisfaction Certain brands go to others when faced with premiumBut aside from a few internal notes sent to dealers, the manufacturer is really unwilling to take any action to fix the problem.

Of course, buyers who are looking for a new car and can afford to wait for an order or dealer assignment can often avoid the premium, but they really need to be patient.

Missing options and delayed delivery

Once the car is finally made Some brands have removed the option because the component was not availableThere was a time when you wanted a BMW with a heads-up display or an upgraded audio system, but you were out of luck. Mazda still makes high trim cars without the power rear tailgate. So consumers not only paid more, they paid less.

Even if you ordered a car, chances are you didn’t get it when you thought you’d get it. Dealers and automakers had a backlog of orders. Some of my clients had an order that was estimated to take him 4-6 months and kept him waiting over a year before he finally got the car. For those buyers it was worth the long wait to avoid market premiums, but many buyers don’t have such lead times and need something now. It meant a minefield.

Record high used car prices

With new car inventories depleted, buyers looking to buy quickly often had to turn to the used car market. Buyers found that the lightly-Second-hand popular models were sold at almost the original list price, Shopping at the low end of the market jumped the cost significantly.

there were several segments where You can record the value of your used car However, it is usually a depreciated luxury car or funky 5 door fastback.

The key for people shopping in the second-hand segment is Be flexible, explore comparable listings, and act fast. There are some indicators of a cooling in the used car market, but it won’t cool until new car inventories are close to ‘normal’ levels. Pre-owned prices are expected to drop significantly. Given the difficulty of the current market, you might think that the short-term option is the best way to go, but that approach is not the best way.

terrible lease

Some buyers viewed the car market the same way they viewed the housing market. Because the purchase price is so high, many people have found that renting their living space is a better way to go. not. Didn’t offer regular monthly savings.

The combination of markups, high interest rates (financial factor) and lack of rebates has created a tremendous leasing storm. In some cases, lease payments were higher than financing payments. Buyers who submitted leases and were looking to replicate the same payments on the same vehicle were often quoted over $100/month. Buying is often better than leasing.

The big question, of course, is whether buyers will see lower prices in 2023. There are some signs that consumers are opting out of the market. Sales of giant bows for cars are dwindling for maniacs who do big holiday shopping without consulting their loved onesDepending on how you look at the economy, A recession is imminent or in progresswe may see some easing next year, but I doubt the “killer deals” will return any time soon.

Tom McParland is a contributing writer for Jalopnik, AutomatchConsulting.comHe saves us the trouble of buying or leasing a car.Questions about buying a car? Send to

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