725 S Garfield Ave
Traverse City Mi 49686
Garfield Auto Service Center
725 S Garfield Ave
Traverse City Mi 49686
Ph. 231.929.3862
Fax 231.932.7511
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Keep Your Car: New Cars Are Slim Pickings

August 18, 2020, 12:00 am

As we head into fall, there are a lot of good reasons to hold onto the car you’re driving. From economic uncertainty to variable supply, keep your vehicle going strong with Garfield Auto. 

While low interest rates and the promise of another stimulus check hitting bank accounts before the end of the year might be enough to get you looking at new or used cars, it might be worth taking a deep breath. There are plenty of long-term economic repercussions still to face and the shopping for new vehicles in particular might be slim pickings. 

Data shows that the first round of stimulus checks saw a small increase in used cars sales, but new cars have been abysmal since spring. Even some small signs of life in June have US automotive sales slumping, and there’s little hope of the ship being righted before the end of 2020. One major issue for car buyers is a simple one: supply. 

Manufacturers shut down in March and April, with some still facing crippling supply chain issues into July. Those factors have combined to bring new cars sales to a crawl. Industry experts believe the US has just a 62-day supply of new vehicles available as we roll into and through September. That’s over 2.3 million cars, but that doesn’t tell the whole story. 

Of that number, not all are in-demand, and its consumers decide if we have enough of the right vehicles. Some models are almost impossible to find in general, and if buyers are looking for a specific trim package, color, or engine, then they might be waiting well into 2021. GM, Ford, and even Toyota are still facing supply delays, and with different dealers getting shipments ahead of others, availability could change regionally even as new vehicles do arrive. 

Ironically, inexpensive cars are the most available. People most affected by the pandemic and in more dire economic realities have stopped buying along together. Cars under $20,000 are at normal or even above-normal inventory levels in nearly every part of the United States. 

Of course, no new vehicle is as affordable as the one you own. On average, car ownership costs approximately $8,000 annually, assuming you drive 15,000 miles and depending on what style of car you own. Of that total, approximately $1,800 of that will be attributable to maintenance and repairs. 

Are you holding on to your car or shopping for something new? Let us know!

 

Posted by Garfield Auto at 12:00 am
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