Since nearly all dealerships across the country are facing challenging times, they have had to learn to adapt and/or survive. One way they’ve been able to do this is by concentrating on selling used cars. The hunt for used cars, though, also poses a new challenge because most drivers are holding onto their current cars and are not eager to spend, especially given the current economic climate. Dealerships have also gotten creative and are using alternative methods to buy vehicles, whether it’s through social media or directly from a private seller.
But of course, with very little inventory of new cars and the demand for a functioning vehicle, dealerships are increasing used-car sticker prices. In other words, a car with high-mileage can easily cost you $30,000. You read that right.
Overpriced used vehicles are the best option if you’re in the market to buy a car. According to Business Insider, things will gradually get better in 2022 by mid-year, and we should see a 3% decline in used-vehicle prices.
Tesla – The Only Company Surviving the Chip Shortage
While almost every dealership in America and most dealerships in the world are struggling, there’s only one automaker that has managed to escape the massive blow in 2021. According to the Wall Street Journal, “Tesla has emerged as one of the auto industry’s biggest winners in a year plagued by semiconductor shortages and snarled global supply chains. It owes that success in some measure to its Silicon Valley roots.”
Auto Body & Repair Shops
Unless you plan on buying an electric vehicle from Tesla, holding onto what you already have, if you can manage to do so, is probably the smartest choice—except, what if you get into an accident or fender bender?
I have more bad news. As if crashing or damaging your car isn’t bad enough, now you have to worry about waiting weeks or months to get your car repaired; with most repairs, realistically taking months rather than weeks. Why you ask? Shops are busier than usual, and with a much more inconvenient problem…
Shortages with Parts & Shipping Delays
Blame it on some of the worst delays for shipment with front end parts like headlights, hoods, and bumpers. Electronics are also causing big issues.
To combat shipment delays with parts, shops are communicating with suppliers to get estimates and trying to schedule work around shipping time frames to minimize the time customers are without their cars.
Renting a Car
Renting a car is another headache. Not only are car rental prices averaging between $70- $100 a day, but availability is another factor at play. Winter weather is contributing to the influx of rentals along with drivers who meet pedestrian fate as a result of problems plaguing the car industry.
Additionally, insurance car rental reimbursement expires after 30 days, leaving many customers paying out of pocket for car rentals. In short, it’s cheaper to walk.
Solution
The best thing you can do for yourself is log into Carfixt and get multiple estimates without leaving your house—this won’t solve every problem, but it will solve all of your immediate problems. Whether there’s a shipment delay, or the shop is incredibly busy, you can at least get multiple estimates with just a click of a button. All you have to do is create an account and submit photos of your vehicle, and within a few hours, you’ll be able to get an estimate from a shop. Sure, you’ll have to wait to get your vehicle repaired, but it’s better than spending thousands of dollars and later suffering buyer’s remorse. In fact, according to a study conducted in December, almost 40% of new car buyers regretted their decision.
