If you’re on the market for a new car, you may be in for a pleasant surprise. The current state of the auto industry has made it easier than ever to find a great offer on a new vehicle. Many dealerships are stuck with an oversupply of 2021 and 2022 car models which they need to sell as soon as possible to make room for 2023 inventory. This means that clever online consumers could benefit and find a fantastic offer on a new car.
The Market Situation
Unfortunately for car dealers and automotive manufacturers, sales are on the decline. In fact, global car sales suffered an expected 3.1 million unit drop in 2019. This is an even larger yearly drop than that which was experienced during the 2008 global economic crisis.¹
There are a number of reasons hypothesized for the drop, from the growth of affordable and accessible taxi services like Uber to environmental concerns. But one thing is for sure: many dealers are left with a surplus of unsold 2021 and 2022 auto inventory.
For someone looking to buy a new car, this is great news. Dealers still need to sell their unsold 2021 and 2022 vehicles, and many of them are under pressure to do so quickly in order to have space for the newest 2023 models. This has created a perfect scenario for shoppers to benefit from significant price drops.
One possible major reason for the shape of the current auto climate is the environment. Many countries and cities around the world have begun offering incentives for shoppers to purchase hybrid and electric cars. Not only are these cars good for the environment, but they significantly reduce gasoline expenses. In some cases, this can be a win-win. The consumer can save big on gas expenses, receive a possible incentive for buying a hybrid or electric vehicle, and help reduce environmental damage.
With more and more hybrid and electric vehicles being produced, demand for traditional gasoline powered cars naturally falls.² As a result of this movement, many manufacturers have massively stepped up their hybrid and electric vehicle production.
This coupled with falling global car sales has contributed to a unique scenario where consumers can benefit. In some cases, dealers may be stuck with too many hybrid and electric vehicles. In response to the increased demand, they simply ordered too many and did not anticipate the global sales drop.
In other cases, the increased dealership demand for hybrid and electric vehicles has left many traditional gasoline powered vehicles unsold. Regardless of the situation, it’s a great time to be looking for a new car. If you’re wondering how to take advantage of these bargains, read on.
How To Find a Good Price
The best way to find a great deal is to look online. Many brands offer promotions on their website that they may not mention in person. After all, it may hurt the salesperson’s commission.
Online research can also help you get a good idea of what a car should cost, so you’re not left wondering at the dealership whether you’re getting ripped off.
If you’re not fixated on one particular car brand or dealership, searching online will allow you to easily compare multiple offers. Some car companies may have better deals (and more unsold cars) than others. Putting in a little bit of extra effort to check the promotions of multiple brands can go a long way.
Remember that nothing lasts forever, so now is a perfect time to look for a fantastic offer on a new car while the opportunity remains available.