The struggle to buy new and used cars hasn’t gotten any better over the years, and those in the market for a vehicle should be prepared to have some sticker shock and some patience.
Joshua Burrs, the owner of the Car Buying Center in St. Louis Park, MN, and Jeremiah Larson, who has worked in the car auction business for years, shared with News Talk 830 WCCO’s Susie Jones that buying a car today isn’t like it once was.
Prices for cars, new and used, have skyrocketed since the start of the pandemic, and there has been little to no relief, affecting young and new drivers looking for their first wheels.
Larson shared that while young drivers once didn’t have to spend much for a used vehicle, they are now close to $5,000 more than they were before the pandemic.
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“I’ve never seen anything like this, ever,” Larson said.
Burrs says several factors have put pressure on rising car prices, most notably the shortage of computer chips.
As for hybrid and electric vehicles, Burrs says that one of the companies that makes the batteries has been behind schedule due to production being disrupted by an earthquake.
But Burrs also noted that he is facing stiff competition from not only dealerships but also rental car companies who have been buying vehicles at auctions to regain some of the inventory they lost during the pandemic.
“In a lot of cases, as a buyer, I’m looking at vehicles that we may be selling brand new for $23,700,” Burrs said. “But instead, they’re bringing $27,000 to $28,000 at the auction just because they’ve got rental companies that are willing to just rent it out and make their profits there.”
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With many are looking for some way to hit the open road with their dream car, Burrs says they are waiting for years to get into a new vehicle. But he says if you can wait, it might be best.
“If you have to buy, you have to buy,” Burrs said. “If I didn’t have to buy, I wouldn’t want to go buy.”
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