Expert: Car shoppers shouldn't expect the bargains of years past
CHICAGO (CBS) – That new car smell is sweet! So is the feeling of a new vehicle.
After all, it's one of life' biggest purchases, but don't expect a deal when you go to the dealership these days. That's what Morning Insider Lauren Victory learned from an independent auto expert.
"Don't expect to get the bargains that you once did," said Paul Eisenstein.
Ouch, but Eisenstein would know. He's chief editor of the motor vehicle website TheDetroitBureau.com.
"I have been covering the auto industry since 1979," he said.
The landscape literally electrified over the past decade, with lots of options making it an exciting time to be a buyer. But it's also an expensive time.
"We have seen a lot of dealers mark up vehicles," Eisenstein said. "In some cases, they've marked it up thousands, even tens of thousands of dollars over list price."
And people will pay that, if they need a vehicle immediately because of supply and demand issues. Lots are emptier thanks in part to an ongoing chip shortage.
A customer may need to settle for whatever color, model, and trim is available at the moment. Eisenstein said some dealers may not even sell you a car if you don't agree to upgrades, aka more pricey features.
"This is something they can get away with when there's a shortage of parts, when there's a shortage of production and a shortage of vehicles on dealer lots," he said.
But consumer negotiation power may be making a slow comeback.
"The good news is that the shortages seem to be mitigating," Eisenstein said. "2023 should bring more vehicles to showrooms, and that'll be good news for people who have a very specific vehicle they want."
Still, his expert advice is to take advantage of the industry's new reservation system.
"Rather than waiting until the last minute to go into the showrooms and buy whatever's on the vehicle lot, the better way to do it, whether online or at a showroom, is to place an advance order, Eisenstein said.
So what about used cars? Prices are dropping but higher interest rates may increase the overall cost, and cancel out any savings for those financing. Buying in cash would be a consumer's best bet if they can.
Whatever your timeline, Eisenstein said it's important to check your loan options and your bank account before you try to make a deal.
Being financially prepared will better your chances at walking away with a comfortable price.
