The weather outside may not have turned frightful quite yet, but try telling that to car shoppers on the hunt for a new vehicle. The stubborn inventory shortage has stirred up a perfect storm of high demand, rising car prices and dwindling incentives; as a result, some shoppers may be questioning if they should venture out to look for a vehicle or wait out the storm instead. Unfortunately, “waiting it out” could mean through late 2022 as that’s how long industry experts predict the inventory shortage may last.
Related: Car Shoppers Face Shorter Supply, Rising Prices
The trepidation is certainly justified. According to J.D. Power’s latest report, the estimated average transaction price for new vehicles in November is up to $44,043. On the bright side, that’s slightly down from October’s record high of $44,417, but it’s an 18% jump from November 2020. Low manufacturer incentives are partially to blame: The average incentive is estimated at $1,612 or a record low of 3.6% off MSRP.
Incentives for SUVs and pickup trucks, which comprised a record 81% of all new-vehicle sales in November, offer higher average incentives than cars: $1,640 and $1,497, respectively. It’s consequently no surprise that each of our featured deals for December are pickup trucks and SUVs. But in addition to researching the best deals, shoppers can set themselves up for success by moving fast when they find the right ride. According to J.D. Power, most vehicles aren’t hanging out on dealer lots for long: Nearly 55% of vehicles are sold within just 10 days of their arrival. Shoppers who have a car to trade in may find relief if they put the trade-in value toward a new-car purchase. With demand for used cars up, the average trade-in value is an estimated $9,549 — a staggering 83% increase from the same time a year prior.
So, which vehicles offer the best opportunity to save? Read on to find out.