Sponsored Content brought to you by BMW of South Austin
It’s no secret that 2020 threw a wrench into the production chain worldwide. From shutdowns and shutterings, to decreased production of semiconductor chips, even if for a few months, the pandemic created a supply-and-demand issue affecting the tech industry that bled into the car market. What does this mean for you? In essence, there’s a golden opportunity now to trade in your car and buy new. “Time sensitive” being the operative phrase. Why? Let’s break it down.
The industry in general is facing a shortage of components that will make it difficult to produce the amount of vehicles it normally has on hand. Lowered supply. Simultaneously, aside from last year in which consumers commuted less, the trend of automobile sales has been steadily increasing. Increased demand. Also some automotive retailers in 2020, in an effort to break even, have gone and pushed for lower interest rates, more incentives and even longer terms just to sell their cars, not realizing the magnitude of the supply issue. These factors have contributed to a real need for inventory. That’s where you come in.
How many times in your life have you seen your car’s value increase? It’s unheard of, but here we are. Are we even in the right timeline here? Obviously, we are in La-La Land as far as giving more for trade-ins, basically giving the house away. Advantage, customer. In a candid moment with our sales manager, he offered a glimpse into his world. “We desperately need used cars,” the gravity in his eyes seemed to say. In some instances, used cars are now more valuable than they were when they were new. What a world!
Will this dream bubble continue forever? Obviously not. As soon as the supply levels off, so will the wacky price action (Economics 101). However, if you’re in the market or thinking of being in the market, this is the news you’ve been waiting to hear. As for today, it’s a buyer’s market now and for the foreseeable future.