How to Buy a New Car During a Shortage: Hunting for the Right Vehicle

Searching for a new car post-pandemic can feel like hunting for buried treasure. Unfortunately, it may not be as simple as “X” marks the spot.

For many people, navigating the shortages in the auto market can be overwhelming. What if you need a car right now? What if you’ve been saving for a while and are finally able to buy? With a little effort, a new or used vehicle could still be possible—if you know some of the tips and tricks to buying a car during a shortage.

When it comes to feeling the COVID-19 effects of the pandemic, the new vehicle market has been hit hard. Global supply chain issues have caused a shortage of semiconductor chips needed to build new cars and trucks, resulting in a serious deficit of available vehicles.

We’ve all grown reliant on the technology in modern cars—and technology needs computer chips. According to the New York Times, some vehicles use over 3,000 computer chips! There are simply not enough materials or manpower to produce enough to keep up with the demand—major car manufacturers have no choice but to slow down production, which drives prices up.

The waiting game Cars are being sold faster than ever—just days after arriving at dealerships. If you’ve got your heart set on your dream car, you may be waiting longer than expected.

This could be difficult if you don’t have a way to get around while you’re waiting to buy. There are alternatives—public transportation, ride-shares or asking for help from family and friends are some options to consider.

If none of these work for your situation, investigate vehicles that are lower in demand. For example, four-wheel-drive SUVs and trucks are in high demand—especially in mountain and desert areas. In other areas, fuel-efficient vehicles are more popular. Features matter, too; if it’s possible to live without the bells and whistles for now—like navigation, Bluetooth or automatic start—you may find a vehicle you can get in your driveway a little faster and for a better price.

Expect to pay more Before the pandemic, a negotiation was part of the process. Now, you likely won’t pay less than the sticker price you see on the window.

Dealerships are much less willing to drop the prices because the demand is so high. However, they still want to make sales. Dealers may not want to negotiate on the price of new cars, but you can ask to get a few things thrown in to finalize the deal. Think free oil changes for a year or the free installation of a towing package. Anything helps, right?

Look far and wide Finding the car that you want is one thing but finding it where you want it is another. Due to shortages, buying a new vehicle at your local dealership may prove to be more difficult than you think.

Be prepared to travel off the beaten path. Set aside ample time to search at dealerships outside of your immediate vicinity. You never know, you may even find a better deal than you thought possible.

Get your finances in order Maybe you’re not quite ready to buy yet. With prices higher than usual, budgeting for a new vehicle has never been more important. Taking the time to save money and improve your credit, can help improve your chances to qualify for a low-interest rate.

Once you’ve decided the time to buy is right, consider getting preapproved for an auto loan before you visit the dealership. That way, you’ll know exactly what you can afford.

The financial planning shouldn’t end there. Make sure you’ve devised a good payoff plan for your auto loan. Staying on track and making your payments on time can go a long way to destressing your life as well as preparing your credit for your next new car. You’ve got this!

The search pays off The path to your new dream car likely isn’t a straight line. But once the search is over—and you’ve purchased your new ride and budgeted for the payments—it’s time to enjoy the fruits of your labor.

Whatever your situation, Mountain America Credit Union is ready to help you roll around town in the car of your dreams. Contact us today!