Is Buying a Car in 2022 Worth It?
With the COVID-19 Pandemic coming to a close, consumers are once again demanding a large supply of new vehicles. One that cannot yet be fulfilled by the world’s manufacturers due to a massive shortage of semiconductors with no end in sight.
This shortage has dealerships all over the country scrambling to find a way to put customers behind the wheel of a new vehicle. With the ongoing shortage and rising prices, you may be wondering if now is the right time to buy a new vehicle at Steven Toyota, and this blog just may help you decide.
At Steven Toyota, the shortage isn’t stopping them from stocking the Harrisonburg, VA area’s best selection of new, pre-owned and certified pre-owned Toyota vehicles. Whether you’re looking for a new or pre-owned vehicle, Steven Toyota has plenty of options for you to choose from. Don’t let the shortage hold you back, stop by and see why Steven Toyota is Harrisonburg’s favorite Toyota dealer today!
Rising Prices, Dwindling Inventory
As the world slowly returns to form after the COVID-19 Pandemic, the global supply chain is struggling to keep up after such a long period of disruption. Back in 2020, with the world at the height of the pandemic, factories all over the world shut down to stop the spread, while subsequently stopping the production of goods.
During the global shutdown, inventory began to pile up on dealership lots all throughout the United States. With each passing day, the cost of insurance and interest on this sitting inventory totaled in the hundreds of thousands, causing dealership owners a slight panic. This time of uncertainty and panic was not here to stay long, as a bigger problem awaited dealership owners in the near future.
Fast forward a year to 2021, dealerships throughout the U.S. are struggling to keep up with demand for inventory as manufacturers struggle to produce new vehicles. This struggle is largely due to a semiconductor shortage that was sparked by the worldwide lockdowns that took place during the pandemic. With factories shut down and semiconductors not being made, new vehicles ceased to be produced and vehicle manufacturers found themselves struggling to fulfill dealership orders.
In response to the growing supply chain issue, dealerships began to turn their focus toward to used vehicle market, encouraging customers to sell their used vehicles or complete trade-ins. With used vehicles more desirable than ever and equipped government-backed stimulus checks, consumers throughout the United States flocked to dealerships to trade in their old vehicles in favor of new ones.
The rush by dealerships to find ways to supplement the shortage of new vehicles only further exacerbated that shortage, leaving dealerships in a pickle. Now dealerships have droves of customers clamoring to trade-in their vehicles, with no new vehicles to sell those customers, resulting in long waiting lists and disgruntled customers.
With this shortage, you may be wondering if now is the right time to start the search for a vehicle. The answer here at Steven Toyota is a resounding, YES! Despite the supply chain issues and a shortage of new vehicles, there has never been a better time to trade in your old vehicle in favor of purchasing a new one. Keep reading to find out why!
The Time Is Now
If you’re wondering if it’s a smart idea to buy a car in 2022, the answer is YES! Now, you may be doubting that because of what you just read above…but fear not! There truly has never been a better time to buy a new car, truck or SUV — and here are some reasons why.
One of the biggest reasons you should be buying a car right now is because of the incredibly low-interest rates that are available. Right now, banks are loaning out money at record-setting rates in attempts to reinvigorate the struggling, post-pandemic economy. With rates as low as 0.99% APR available, it’s a no-brainer to buy a new vehicle right now as rates like this aren’t typically available.
Your Car Is Worth More Than Ever Before
Yeah, you read that right…your old car is worth more than ever before thanks to the shortage of new inventory. Typically, all cars begin depreciating the moment they leave the dealership lot. However, in this whacky post-pandemic economy, some vehicles have actually gained value as they aged.
As dealerships all over the country make a push to purchase used vehicles and increase trade-ins, the value of used vehicles has increased astronomically. That means there has never been a better time to purchase a new vehicle, as your trade-in is worth more than its ever been. If you’ve been tossing around the idea of buying a new car, you’ll want to act now before the value of your used car plummets back to pre-pandemic prices and you lose out on thousands.
You can get the best value for your used car, truck or SUV at Steven Toyota located in Harrisonburg, VA. At Steven Toyota, they have the Harrisonburg area’s best selection of new and pre-owned Toyota vehicles, so stop by and check out their inventory today!
Customize Your New Vehicle
Due to the semiconductor shortage, chances are you will be waiting on a new vehicle to be built and shipped to the United States before you buy it. This wait may seem like nothing but a hassle when in reality it is the best thing that could happen. Wondering why it’s the best thing that could happen? Keep reading to find out why!
While it may not seem ideal to buy a car that hasn’t yet been built, there are some advantages to doing so. A car that hasn’t been built yet means you can tailor to fit your exact needs and specifications. That means you can forego features you won’t use and add features you may not have been able to find on a specific trim of that vehicle. With the added flexibility that comes with ordering a new Toyota vehicle, it truly makes right now better than ever to buy a new vehicle.
Reasons You Should Avoid Buying a Car in 2022
This blog would not be complete without a good counterargument. So, let’s talk about a few reasons why you may want to avoid buying a new car, truck or SUV in 2022.
Seemingly Endless Waiting Lists
One good reason to avoid purchasing a new or pre-owned vehicle in 2022 is the waiting game. Let’s face it, nobody wants to spend their hard-earned money on a vehicle they have to spend months waiting for. However, the reality of this post-pandemic world is filled with long waiting lists for new vehicles of all shapes and sizes.
If you’re considering purchasing a new car, truck or SUV, make sure to inquire about the average waiting time at your dealership of choice. Another thing to keep in mind is delays do happen, especially with the rampant issues in the global supply chain. That being said, if you place an order for a new vehicle, be prepared to be patient.
Patience is a virtue they say, and if it’s a virtue that escapes you, perhaps its best to look into a pre-owned vehicle instead. If a pre-owned vehicle is something you would consider, Steven Toyota has plenty of them to choose from at their Harrisonburg location — stop by today!
An unfortunate consequence of the vehicle shortage has been the steep rise in the prices of new vehicles. With incredibly high demand and constrained supply lines, the cost of new vehicles is rising to record highs in a staggeringly short amount of time. Many new vehicles are flying off of dealership lots, sometimes for prices above the manufacturer’s suggested retail price (MSRP).
Although interest rates are at all-time lows, it still may be wise to refrain from purchasing a new car, truck or SUV in 2022 thanks to the rising cost of new vehicles. If you want to save money and can keep driving your current vehicle, it just may be best to wait out this influx of pricing on new vehicles.
Yet another drawback to purchasing a new vehicle during this shortage is the lack of available options. Due to the semiconductor shortage, vehicle manufacturers are opting to only produce certain types and trims of vehicles, leaving less variety to choose from. This is being done in an effort to keep profits where they need to be while dealing with a constrained supply of vehicles and parts.
During this shortage, you run the chance of walking onto a dealership lot and not being able to find a vehicle to fit your wants or needs. Many vehicles that are being produced right now are coming loaded with options and features, which increases the cost and makes them less appealing to budget-conscious consumers.
If you’re considering purchasing a new vehicle in these times, keep in mind that you may not get exactly what you want in a vehicle. This can be prevented with a little patience, all you have to do is simply wait out this global semiconductor shortage which should be over soon. Getting the vehicle of your dreams is still possible despite the worldwide shortage of vehicles, so don’t lose hope!
The Answer Is
Now that both sides to the argument have been made, the answer to the question “Is Buying a Car in 2022 Worth It” still remains a resounding yes. This is because the power is still in the hands of the consumer, even with the reduced supply of new and pre-owned vehicles. Consumers are more powerful than ever in the post-pandemic world, and it’s because struggling companies need every dollar they can get. Keep this in mind when shopping for your next vehicle, whether it’s new or pre-owned.
If you’re still reading and have realized that now is better than ever to buy a new vehicle, then stop by Steven Toyota located in Harrisonburg, VA today! At Steven Toyota, they stock the Harrisonburg, VA area’s biggest selection of new, pre-owned and certified pre-owned Toyota vehicles and sell them at the best prices. Get the best deal on your next Toyota vehicle by shopping at Steven Toyota located in Harrisonburg today!