Auto Industry Updates

Important Automotive Trends and Car Sales Statistics

By Jon Parske, General Manager, Scottsdale

The automotive market has been unpredictable for more than a year, largely due to the effects of the pandemic, intermittent factory shutdowns, and supply-chain constraints. Here are a few important automotive trends and car sales statistics you should know before buying or selling a car.

Current automotive trends and higher prices clearly show that the auto industry is facing a number of challenges that affect consumers. Due to the pandemic, there is a shortage of new vehicles. Many new cars are sitting and waiting on special semiconductor computer chips that are in short supply and will be for the foreseeable future. As a result, used cars are in high demand to make up for the shortfall. In this blog, we’ll take a look at what consumers need to know if they’re in the market for a new or used car, looking to sell outright, or trade-up. 

Selling Your Car

Car sales statistics show that total vehicle sales in the United States decreased from 13.06 million in August of 2021 to 9.66 million in September—the lowest number since the record low of 8.60 million in April of 2020. The problem is demand outstripping supply. This means there’s no better time to sell your car, whether it’s leased or owned. We expect these conditions to continue for the foreseeable future, but our best guess is it will be anywhere from 6 months up to a year before supplies of new vehicles begin to stabilize, until then used car demand and prices will likely continue to rise. 

Automotive trends show that the cars that are in high demand include Toyotas and other well-known brands of SUVs including EU import models. While SUVs are always a solid family choice, they are popular with all age groups. Trucks are also in very high demand. 

Get top dollar for your used car. Get an instant cash offer online or in one of our three convenient locations.

In a lease and not sure what to do? Take the equity now through a lease buy-out, and roll it into a nice used vehicle and then wait till the market shifts.  You’re better off selling the vehicle before your lease is up, as you’ll get closer to the current market value for the car on your own. 

Ready to get out of your lease?? Get an instant cash offer online or in one of our three convenient locations.

Buying a Car

Due to the challenges of the current automotive market and new vehicle shortages mentioned previously, purchasing a new car might take a little longer than normal, and many dealer incentives have been dramatically cut. In an effort to give their dealers something to sell, several automakers have rolled out cash bonuses for consumers who trade-in vehicles. 

Car sales statistics also show that many manufacturers have launched cash incentives for customers who order new vehicles. If you can wait for a new car, secure the deal now while there are cash incentives on the table and interest rates are low. Even though you might be paying more for a new car, it will have a better net value than normal. But for those who can’t afford to wait or need a new car now, late-model used vehicles still offer some great options. While prices for used vehicles may be at a premium, you can still buy a used car and get a great deal depending on your choice of dealership.  At Auto House we carry a range of quality used vehicles for almost every budget with excellent finance options and transparent pricing. 

Here’s another consideration for those who may be financing a new car purchase: gap insurance. This little-known type of insurance is a supplement to regular auto insurance. It’s designed to protect you from taking a financial hit if your car is badly damaged or totaled and there’s a gap between what you still owe and what the car is worth.

Gap insurance covers the difference between what a vehicle is currently worth (which your standard insurance will pay) and the amount you actually owe on it.” – Insurance Information Institute

Vehicle Maintenance Update

Finally, a quick update about vehicle maintenance. Parts are hard to get right now for the same reasons new cars are hard to procure. When vehicles are produced, manufacturers depend on a bunch of different supplies from suppliers. Predictably, many parts factories also experienced shutdowns during the worst portions of the pandemic, and as a result, some vehicle maintenance tasks might need to be put on hold due to the scarcity of parts. Time constraints are put on certain parts such as tires and batteries, so replacing these should not wait. Luckily, the supply chain for these types of parts is far more stable.

Need to schedule repairs and maintenance? Auto House has got you covered.

Collectively, these automotive market issues will not be going away anytime soon, but education is the best bet for customers. Now that you know what may occur through the car buying, selling, and maintenance processes you can make an informed decision about your next ride. We’ll help you find the right vehicle for you and your budget. 

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