One significant development of the automobile market is how buying a car will never be the same again. Most likely, if you are shopping for a new car, you will not find one you want on any car lot you visit. The days of seeing hundreds of new cars on dealership lots are a thing of the past.
Shoppers who visit a dealership to purchase a vehicle will find that there is essentially no inventory. You could wait months for a new vehicle, and realistically, one of the better ways to get one is to place a deposit on an incoming unit. The first chance to get behind the wheel for a test drive will be when it arrives at the dealership. Unless, of course, it is already purchased. Which it could be.
To better understand how the car buying process has changed, we must first understand how we got into this situation. I talked about this recently on the AutoConverse Podcast, which that I recommed listening to for an informative and relaxing audio experience.
> LISTEN: What to Expect When Buying a Car
Today’s cars are computers with wheels. Even an inexpensive new car can contain more than 100 microchips, powering everything from climate controls to shift timing. Luxury cars, minivans, and vehicles with more advanced entertainment and comfort technologies can use more than 150 chips.
As we know, the chip shortage that resulted from the Covid-19 pandemic was due to the lockdowns when a number of people began working at home, children learning at home, and playing more video games. Chip manufacturers shifted their limited supplies of microchips to the computer industry, and when the car manufacturers began opening back up there weren’t enough chips for the auto industry.
Arguably, these are not the sole cause of the new vehicle shortages we are seeing. The supply chain is a complex system and the problems we are witnessing will not be remedied soon. However, the way we buy a new vehicle will never be the same.
Buying a Car Today
If you are shopping for a new car today, you will need to do most of your research online. Websites like Kelly Blue Book, Edmunds, and Consumer Reports give you an idea of the products and brands that will meet our needs. Of course, having the guidance of an automotive sales professional is invaluable - ah hem.
First, determine a few things such as...do you want a sedan, an SUV, or a truck? What features are important? Do you want leather or cloth seats? Is a sunroof important? Are the miles per gallon (MPG) important? Do you want a gasoline-powered vehicle, an electric vehicle, or a hybrid that combines electric and gas power for a higher-than-normal mpg?
Knowing these things, you can begin to research the vehicles that are being manufactured and decide which meets your needs. In fact, you can use our Affiliate Partner site AskOtto to provide such details and let AI (Artificial Intelligence) help locate vehicles that match your criteria.
Remember that just because a manufacturer advertises that they have a product, the reality may be that it is not even being built. Additionally, exterior color selections are limited, and interior color is even more restrictive.
I Know What Vehicle I Want. Now What?
Once you know the vehicle and features you want, you will need to find a dealer that can review trim levels, colors, and most importantly… availability. Typically, you will find availability divided into three categories.
- Vehicles that have been built and are in transit to the dealership.
- Vehicles that have a to-be-built date,
- Vehicles that must be allocated, or vehicles the dealership requests the manufacturer to build.
For a thorough detail of these three possibilities, see the continuation of this article here on AutoConverse.com. In the article, I explain why a little bit of patience is needed, and that you must be ready to place a deposit on an incoming unit, wait for it to arrive, and then take it for a test drive.
From there, the final paperwork can be done to complete the process and you can drive your shiny new car home.
Want Less Hassle? Consider a Used or CErtified Pre-Owned Vehicle.
For those that do not want to go through all the steps above or the long wait, the used car market, especially certified pre-owned (CPO) vehicles, offers the best alternative. Often CPO vehicles will have a warranty that is better than the original factory warranty.
