Supply & Demand: Paying more than sticker price on a new car...

COVID knocked out car manufacturing worldwide. New cars, factory parts, after-market parts. Everything.
If you were lucky enough to 'get in line' for a new car, the wait (in the beginning) was months. Because of this, the value of used cars went up.

No secret here. It's supply & demand. Cars that are 3 years old selling for the same price as when they were new.

I don't 'need' a car, but I've been eyeing the market and shopping for a 'future car' as the one I currently own should easily last 10 years, I'm just considering something a little larger.

Visiting a dealer for a model I wanted to test drive, they only had one to demo. It's not for sale. They are taking orders on it that are approximately 6 to 8 weeks out depending on the color and options.

I asked the price and was told some 'strange code' like 6250. I asked what is a 6250 and the salesman mumbled something. Figuring where he was going, I clearly asked "Are you charging $6,250 over sticker price" his response was "It's negotiable"

An associate of mine sold cars and told me the hottest SUV right now is the KIA TELLURIDE at a sticker price of over $42,000.
Currently, there are bidding wars with people paying over $10,000 sticker just to get one!

I went to the KIA site to check availability, but I was unable to get information on this model. It's not found in inventory for all the local dealerships.

At some point, chips and cars will become available and the demand for new cars will diminish. Those inflated used-car prices will begin to level out too. That means (just like house buying) if you paid too much for a car now, in a few years your devalued used car price will be giving you sticker shock!
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Comments (5)

Jeez. All that money for the exquisite pleasure of spending a month out of a year sitting in traffic.
I went to the KIA site to check availability, but I was unable to get information on this model. It's not found in inventory for all the local dealerships.

KIA is not your friend stay in toyota or American made
Why I said that KIA is ok but hard for parts and needed a cross brace for a transmission 800 new but no junkyard had one. Sportage model little girls should get a few more years out of it but was a steal under the sun. Best way to know if auto is worth it go find a taredown manual from CHilton if you can get one then that model is worth a gamble
My mother last year had a mouse chew her wiring harness around covid lock down and under warranty paid at jeep dealer $2800 for a new harness from firewall plug onto everything under the hood. takes about an hour to do. Rip off parts from dealer. 400% most of the time if you can get parts at other stores. rolling on the floor laughing
The villa next door sold for $175,000 more than I paid for mine a year and a half ago...It does sound good..but most of that will go away as the it always does in the real estate market.

Cars have always depreciated as soon as you drive them off the lot....I would never pay more than sticker price.
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