As car buying is expected to be challenging in 2022, experts have tips to make it better

BOSTON — Sticker shock took on new meaning in 2021 as the prices of both new and used cars soared.

“In 2021, we saw new and used cars break records,” said Jessica Caldwell, Executive Director of Insights at Edmunds.

Year to year, a new car was up 15% and now has an average price of $46,000, according to Edmunds. They found used cars shot up 28% and are now approaching $30,000. The worldwide shortage of microchips is the main culprit in slowing down the supply of cars, but Caldwell believes other factors come into play as well.

“I think there’s been a bit of a wealth effect,” added Caldwell. “I think people wanted to go out and buy a vehicle. People have saved money not traveling, not going out and spending money on dinners, and whatnot. Thru the pandemic, that’s put a little extra cash in people’s wallets.”

Caldwell says, historically, drivers have been in the driver’s seat and have been able to haggle for a better deal. That’s not the case now.

Edmunds found cars are now typically going for 38% more than the manufacturer’s suggested price. Caldwell says this might be the norm for a while. “In 2022, we expect to still see a crunch of inventory. Right now, we see inventories down 75-80%, and you can’t recover from that quickly . . .as a result, on both new and used, prices will stay pretty high.”

“I tell people you’re not going to find a good deal. You can hopefully find the least bad deals,” said Karl Brauer, an Executive Analyst at iSeeCars.com, which is based in Woburn.

Brauer has this advice for shoppers: “If you can be flexible on the kind of car you’re willing to buy, and how much you’re willing to pay for it, that’s your friend.” He says to do detailed research online before heading out to a lot and consider options that might be further from your home.

“If you can expand your search from 20-30 miles around your house to 200-300 miles, even if it takes a couple of hours to get that car and bring it back if you save $1,000 and it’s a five-hour trip, you make $200 an hour by going further to get that car.”

Caldwell says buyers will need to act fast when they see something that’s good, even if it’s not their dream vehicle.

“The reality is you’re going to have to be flexible on options and colors and sometimes the vehicle itself,” explained Caldwell. “They may not have the SUV you want, but maybe they have something comparable as a sedan, and I know that’s not ideal.”

Caldwell believes shoppers need to start thinking about car buying the same they do when they buy a house. They need to make a list of just a few priorities that are considered non-negotiable and then be prepared to compromise on just about everything else.

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