Should I Wait to Buy a Car?

As car buyers face limited inventory, practically zero negotiation, and high car prices, you may wonder if it’s worth it to buy a new car this year. If you’re in need of a vehicle, you may have no choice. But if you have a car that just needs a little work, it might make sense to invest in what you’ve got.

Why it Costs More to Buy a Car in 2022

Supply and demand are driving shortages and higher car prices this year. Carmakers are facing shortages of semiconductors and microchips needed to manufacture new cars, so it’s a struggle to keep up with the demand.

While shortages are beginning to alleviate, dealerships are still short on cars – and that means you don’t have any room for negotiation. When it comes to buying a car in 2022, you’re likely going to have to preorder, take what you can get, or be prepared to wait a while. And don’t count on haggling for a great price.

Is it Worth Buying a New Car in 2022?

If you absolutely need to buy a car this year, you can find what you need. But you may have to wait on inventory, and you’re likely to pay more than you would have a year or two ago. The car inventory shortage is expected to go well into 2022 as production of new vehicles recovers. 

Car shoppers in 2022 see fewer or smaller incentives and many are paying sticker price or more. And don’t count on a deal on a used car, either. As new cars are harder to come by and have fewer incentives with little to no room for negotiation, would-be new car buyers may turn to the used market – and that inflates used car prices and demand.

For many people, it makes sense to avoid buying a car in 2022 unless you’re stuck without one.

Will Car Prices Drop in 2023?

Don't count on a fast decline in car prices in 2023. Inflation is everywhere, and experts expect supply chain disruptions to get better but still continue through 2022. In 2023 and 2024, there’s a better chance to reach pre-COVID inventory volume, but that’s a ways off. And even as vehicle production improves, it will take time before lower prices will reach dealer lots – and you shouldn’t expect to see lots full any time soon.

How You Can Put Off a Car Purchase

If you’re fairly happy with the vehicle you have now, your best bet is to stick with it for another year or two as the new and used vehicle market calms down. We might not see a return to a pre-COVID car market for quite some time, but you can make plans to keep your current car while you wait it out.

• Replace damaged parts. Whether you’ve been in a fender bender or need to replace a side mirror, it’s easier to replace a car part than an entire car.
• Upgrade your car’s look. Want something flashier? Updating parts such as a new hood or grille can give your car a refresh at a much lower price than a new car.
• Use touch-up paint. As you continue to drive your car, picking up dings is inevitable. Touch-up paint can keep your vehicle looking great for years to come.