The ongoing microchip shortage and COVID-19 pandemic have had a profound effect on the automotive market, driving up prices and curtailing supply. Now, in response to the current market conditions, nearly half of new car shoppers say they are likely to delay purchase.
Per a recent study from Kelley Blue Book, 48 percent of new car shoppers said that they would consider delaying purchase due to the current market conditions. The figure is based on surveys conducted in late August. That’s a substantial uptick compared to May, at which time the 37 percent of car shoppers that said they would considering delaying a purchase.
Per the recent Kelley Blue Book study, 80 percent of those car shoppers surveyed in August indicated that they would consider sitting out of the market for three months to a year. What’s more, survey responders in August indicated they would consider switching brands due to low supply, while 19 percent of car shoppers said they would consider a different type of vehicle.
Additionally, 75 percent of car shoppers said they would be willing to travel outside their local area to find the car they wanted, while 38 percent said they would consider buying a used car rather than a new car. This latter statistic coincides with rocketing used car prices.
“With a large portion of the in-market population now saying they plan to delay their purchase given the current market conditions, it will be interesting to see how that could impact the ongoing delicate balance of supply, demand, and pricing across the industry,” said Kelley Blue Book Senior Industry Intelligence Manager, Vanessa Ton.
As GM Authority covered previously, the average transaction price (ATP) for new-car purchases in August was up to $43,355, rising 1.6 percent from an ATP of $42,670 in July, and rising 9.6 percent from an ATP of $39,571 in August of 2020. Combined, all four General Motors brands in the U.S. (Cadillac, Chevy, Buick, and GMC) saw a 0.3-percent ATP increase between July of 2021 and August of 2021, up to $49,468 from $49,343, rising 13.1 percent year over year from $43,749.
Comments
Cars are expensive enough as is. No need to settle for a hefty price increase when you can afford to wait. I feel sorry for those who can’t.
I completely understand the sentiment. However, if you wait for prices to fall, your trade value will fall as well. So, what have you gained?
My car is almost 23 years old with 310,123 miles on it I’m not trading anything I’m waiting for prices to come down because I refuse to be a tool and overpay for something which is already way overpriced.
Obviously, you’re not worried about trade in value. You have driven all of the value out of your vehicle. Which is the best way to get your money back out of a vehicle. However, people driving vehicles less than 7 years old with average mileage or low mileage will probably fair just as well by trading now. When new car dealerships start filling back up with new inventory, used car prices are going to drop. The actual trade difference may not look any different today than it will 6 months down the road. If the new car price goes down $3,000 and your trade in depreciates an additional $3,000, you haven’t gained anything. Just one opinion in the world for whatever it’s worth.
I’m curious to know what vehicle this is?
Buyers have little choice but to wait. There’s nothing on the lot to buy but trucks and truck based SUVs , and not many of those.
Add Me to the list. I planned on ordering a new Silverado 3.0 Diesel this fall for a daily driver to work.(100 miles a day) I just put a new steering box,brakes and wheel bearings on my 2004 2500 hd Duramax with 250,000 miles on it. No way am I settling for something half baked sitting in a field that gm or any body else says I have to buy. I will get punished another year in my trusty old truck.
Same here looking to purchase new vehicle driving my trusty old car gm Sales person trying to sell a 2020 terrain Denali with 5-10 k on it for almost he same price as a new one to over pay for a basically a almost 2 year c u v with the comprehensive warranty almost toast for 41-42 k and a new one is 45-46 loaded (Canadian dollars) I. Not that desperate I feel for people that have no choice !!! Just have to hang on and weather the storm and hope this gets better eventually I hope !!
Well I just switched brands. After 9 years being very happy with my 2012 Silverado, I leased a 2021 RAM Laramie. Prices are way up there so a lease made a little more sense and it’s the first time in 50 years that I leased a vehicle. In August I ordered a Honda Ridgeline for a first week of November delivery time frame. Honda added a option on the order to get more money out of you. Roof rails on a PU is ridiculous so I was able to back out of the deal. No Canyons/Colorado’s to be found since August other than black interiors. The factory is shut down until 9/27 according to GM Authority.
The other day I was at my Chevy dealer having my Camaro worked on, only three 2021 Silverado’s in stock and none to my liking. All had black interiors. Used trucks though plenty with just about every brand were way over priced and too many miles. I looked on line at RAM and the dealer near me lists 125 trucks in stock. A visit and I would say at least 50 trucks. Sure enough one with the brown interior (about two in stock, the rest black interiors) , white exterior, perfect. I have to say the ride and quality is far superior to the 2012 Silverado. I have not driven a new Silverado but four coil springs on the RAM make it a smooth ride. So I’m a RAM guy for the next few years but still love my 2019 1SS Camaro Convertible.
my lease is up in Jan for my cadillac. I plan to buy it for the residual value. it is way below in mileage . black book est. is $15,000 over the residual price. I plan to keep until dust settles down.