Is It Time to Buy a New Car – Maybe, Let Me Explain
In late Spring of 2011 there was a significant shortage of inventory brewing in the new car market, and many dealers who thought they’d never get their heads above water with all that inventory are now worried there won’t be enough. And we all know that supply and demand often dictates prices in the marketplace. Well, that’s what is going on right now, and with compact four-cylinder cars selling like Girl Scout Cookies in front of the corner market, there just are not enough vehicles to go around.
And things have gotten worse due to Natural Disasters girl scout badges too. Consider if you will the recent Japanese Earthquake, which still has Japanese car makers in a pinch due to parts, and many factories have gone idle or severely cut back production. Meanwhile, the factories in Japan are dealing with energy shortages since all the nuclear power plants are coming offline, there are blackouts and mandatory conservation. Speaking of power, same thing in China, many car factories and parts makers are there too.
The drought in China has been significant and the major hydro-electric power plants are turning off as no more water can be let out of the dams. In the United States we’ve also had some challenges, remember those horrific Tornadic Cells in Alabama, well that state is a huge manufacture of cars. And ever consider how many cars weather like that wipes out? It’s sent shock waves through the used car markets, prices and inventory at auto auctions are effecting things as well.
And all those flooded areas in TN, MS, and LA are also leaving people with no car and thus, out to buy a new one. Not enough cars, too many buyers, and too much shortage these days. That means one thing, prices are going up. The other day I was discussing this with a friend and he saw an advertisement in the local paper here for a Ford Compact, and he was asking me if he should wait because maybe the price will come down? Maybe, but probably not, and he might wish to go work out a good deal now and drive it home, before the prices increase in the near future I told him.
Is now the right time to buy a new car? Well, it just might be, and if you do need a new car, you might consider all this and think on it. If you can handle it in your budget may this is a very smart time to start looking.