Why You Should Wait to Buy a Car

Why You Should Wait to Buy a Car

Last year I moved back to the U.S. after living overseas for nearly a decade. I lived very modestly and didn’t need a car as I worked and traveled through Southeast Asia. However, living in the U.S. is an entirely different story. Since I was working from home, I thought I could get by without having to commute daily. Unfortunately, getting around in the U.S. with only public transportation was much more difficult than I expected. Needing convenience and independence, I began shopping for a used car. Imagine my shock when I discovered the market had completely transformed since my last purchase. It was one of the most stressful and difficult shopping experiences I have ever had. Unless you have an urgent transportation need, here’s why you should wait to buy a car.

Looking to Buy a Car in 2021

I spent months researching different vehicles. Although I wasn’t driving every day, I was often going long distances and using back roads. Ultimately, I settled on the Toyota RAV4 since it met all of my minimum requirements of reliability and safety. With the decision made, I focused on the search. I started with models that were about 10 years old since that’s what I expected was within my budget.

However, even these older models were extremely overpriced. Furthermore, none of them had all the features I needed. I adjusted my search once again since newer models had better fuel efficiency with only a slightly higher price by comparison.

Once I narrowed my scope to 2017-2019, I spent hours calling dealerships and arranging test drives in the area. At the same time, I was also scouring national websites looking to see if I could find what I wanted at a better price. After a few failed negotiations and missed deals, I finally found a car. The catch was that it was in another city. So, my husband and I picked it up in Chicago and drove it home.

3 Reasons Why You Should Wait to Buy a Car

What I learned from this experience was that had I been able to, I should have waited to buy a car. Here’s why.

1. There is a global microchip shortage.

There is an ongoing global shortage of semiconductor chips. And, no one can be sure how long it’s going to last. Some industry experts say it could extend well into 2023. Not only does it mean that there are fewer new cars available, but it has also supercharged the demand for used vehicles.

These microchips are required for many systems, so manufacturers had to cut production due to the shortage. Dealerships are receiving fewer vehicles and new car inventories are only a third of what they usually have. Many lots sit empty as they wait for more vehicles to arrive.

In an attempt to meet consumer demands, manufacturers are eliminating things that rely on the semiconductor chip to function. So, even if dealerships are getting new cars, they may not have all the features you would expect.

2. Less inventory equates to higher prices.

Right now, the car industry is a textbook case study of how supply and demand work against the consumer. Limited inventories and increasing demands for new and used vehicles have caused prices to skyrocket. Many dealers are charging more than the MSRP because people are willing to pay it.

According to Edmunds.com, 50% of people are paying more than the sticker price. In June, the average price for a new vehicle was $42,331 which is 8.6% than last year. For a used car, the average price shot up to $26,457, a 27% increase from the previous year.

Unfortunately, this also means dealerships are less likely to offer discounts or negotiate on price. If you aren’t willing to pay the asking price, you can be certain someone else is.

3. It’s harder to find what you want.

There is no doubt that it is currently a seller’s market. What makes it even harder is that many vehicles never even hit the lot. It is becoming more common for buyers to make deposits even before the new cars arrive, sight unseen.

Some analysts suggest that the car market may never return to normal since manufacturers are rethinking production and sales strategies. So, if the car you want isn’t in your budget, you may have to compromise. Many consumers have to settle for cheaper options. This could mean choosing older models with higher mileage, different colors, fewer features, or a different make and model altogether.

If You Can’t Wait to Buy a Car…

The simple solution is to ride out the price increases and wait to buy a car. Unfortunately, not everyone has the luxury of waiting for the market to improve. Even though it is a tough climate, you can find good deals. But, timing your purchase is important. Many customers shop during sales promotions and other events to get better prices. However, there are also a few other factors to consider.

Sales Quotas

Any used car salesman will tell you about the quotas they must meet each month or quarter. So, if you shop around the end of these cycles, you are likely to have more room for negotiation.

Choosing the Best Time

You should also avoid going to a dealership on the weekends since many other people are likely to be shopping at the same time. Instead, try to go during a weekday when you will have the salesperson’s undivided attention.

Psychologically speaking, it’s also a good idea to go earlier in the day. People tend to be more flexible when they are in a better mood. So, if you can make a deal before the stress of the day sets in, the sales reps will probably be more open to negotiating.

Know Your Bargaining Position

If you don’t know where to start, read the latest consumer reports to help you choose the best vehicle to suit your needs. And, if you have a vehicle to trade, the market will work in your favor. Elevated prices guarantee that dealers will give you the best trade-in value possible.

Although these tips might save you a few bucks, you can be sure you are going to pay more for a vehicle if you buy today. And until microchip production returns to current levels, you can expect it to be that way for a while to come.

Read More

 

What Does the Future Hold for Autonomous Vehicles?

What Does the Future Hold for Autonomous Vehicles?

Although we are still years away from full maturation of the AV market, the future is here. Self-driving vehicles are hitting public roads, testing new automated driving software. While developers are still perfecting their technology, huge strides are being made in autonomous vehicles. In fact, Intel and Strategy Analytics estimate that the industry will be worth $7 trillion by 2050. And, with the cost of technology dropping, they could be commercially available sooner than you expect. This leaves many investors like myself asking, what does the future hold for autonomous vehicles?

Who is Leading Autonomous Vehicle Technologies?

Three AV Developers to Watch

If you have been following the news, there are some exciting advancements happening with AV technology. However, there have also been several deaths during beta testing and an unfortunate accident involving a pedestrian. So, industry watchdogs are calling for stricter safety standards to ensure they operate safely. As developers continue to improve their AV technologies, here are three companies to watch.

1. Alphabet inc. (Nasdaq: Goog and googl)

What first started as Google’s pet project has grown into one of the industry leaders. Waymo first launched in 2018. Since then, it has logged millions of miles with its autonomous vehicles. On average, the data shows that their cars can complete 13,219 miles in automated mode before needing manual intervention. With a combination of sensors, short-range lasers, radar, and lidar technology, their vehicles have a 360-degree view that can detect and track moving objects in a 300-meter radius.

Now, they even operate a fully driverless fleet of vehicles in the Phoenix area. Through the Waymo One app, users can now call for a car that does not require a human driver. While safety remains a huge concern, Waymo is forging ahead. In addition to their self-driving ride-share program, it also hopes to break into local and long-distance transportation.

2. Tesla Inc. (Nasdaq: TSLA)

Company CEO Elon Musk has made several ambitious claims about Tesla’s Level 2 AV technology. He hopes to transform the driving industry with the addition of its Autopilot feature to electric vehicles. Although they have yet to use lidar technology, it utilizes cameras, radar and ultrasonic sensors in conjunction with it software and computing platform.

They have also been testing a beta version of its Full Self Driving (FSD) on public roads. Select customers can also purchase it, creating an even larger pool of software testers. However, recent tragedies have brought a harsher look upon the program’s safety features and protocols.

3. XPeng Inc. (Nasdaq: adr, NYSE: xpev)

This EV maker, backed by Alibaba, has made several announcements that pose a serious threat to its competitors. During a recent press event, XPeng sent a fleet of 15 sedans on an eight-day trip along the eastern coast of China. After completing the 3,600 km (1,864 miles) trek, executives claim it surpasses Tesla’s Autopilot software in several areas.

Just this week, XPeng also showcased their newest model at the Shanghai Auto Show. The P5 will be the world’s first smart EV to include its automotive-grade lidar tech. Its XPILOT 3.5 autonomous driving technology has a total of 32 sensors. It incorporates 2 lidar systems, 5 mm-wave radars, 12 ultrasonic sensors, and 13 high-res cameras. Although pricing is not yet available, you can be certain it will be a major player in international AV markets.

What Safety Concerns Exist for Autonomous Vehicles?

Despite recent safety failures, manufacturers hold that automated vehicles are statistically safer than human drivers. They claim this technology will reduce fatal car crashes by removing human elements like negligence, drowsiness, and drunk driving. However, several fatal crashes involving pedestrians and onboard operators leave consumers skeptical.

Statistics show that most accidents involving autonomous vehicles are the result of other drivers’ failure to follow traffic laws. However, industry watchdogs like the National Transportation Safety Board and the National Highway Traffic Safety Administration are calling for more accountability. Many want to impose stricter standards that require AV pilot software to outperform human drivers. They want the software to incorporate more intelligent technology to improve decision-making, detection, and response to other drivers.

Other unpredictable factors create significant safety threats as well. Weather conditions, poor infrastructure, traffic congestion, and the behavior of other drivers are just a few that come to mind. In many instances, AV systems still require an onboard pilot to take manual control when reacting to unexpected environmental factors.

What Does the Future Hold for Autonomous Vehicles?

The million-dollar question for investors is what the future looks like for autonomous vehicles. Although no one has a crystal ball, experts can offer insights into how this technology could transform our lives. In his research brief “Autonomous Vehicles, Mobility, and Employment Policy: the Roads Ahead,” MIT professor John Leonard takes a hard look at AV technologies. He discusses both the current progress that has been made and future applications as the software becomes more reliable.

Current AV Technologies

Presently, most operating systems would best be described as driver assistance. While there are many more Level 2 and Level 3 automated vehicles, most still need a human driver on board. Leonard believes it will likely be another decade before fully automated Level 4 vehicles become widespread.

However, you can be certain that manufacturers will be racing to perfect technologies after Amazon, FedEx, and UPS committed to electrifying their fleet of delivery trucks.

The Future of Autonomous Vehicles

AV technology could potentially be one of the biggest technological breakthroughs of our generation. It has limitless applications in several industries such as trucking, delivery, and rideshare services. However, its success will be largely dependent on consumers’ acceptance of electric cars and driverless technology. You can be certain though that affordability and government incentives will speed up the transition.

It will also have a huge impact on the job markets and labor requirements to support the new technology. Although some fear it will reduce the number of human jobs, developers believe that it will merely change the nature of the jobs they need. With proper workforce training, the driving and transportation workers will be able to transition into support services. While much is left to speculation still, there will be a huge demand for technical and maintenance staff, call center and dispatch operators, and engineers.

The growth and application of AV technology will likely be a gradual expansion on a regional basis. Once developers determine when and where it will be most profitable, they will continue to target specific types of transportation. However, a slow rollout will probably be the most effective way to gain consumer acceptance. Not only will it allow manufacturers to improve the safety features, but it will also help ease critics’ concerns.

Read More

Buying a New or Used RAM Truck without Hassles

Whether you are buying a new or used RAM truck, there are factors that can make the experience smoother or more difficult. One of the usual issues with buying a new or used car is what choice of car to buy. However, since you have already decided on the type of truck you want to get, you may only have two more things to consider. The first is the model you want to purchase and the second is the dealer to buy from.

Read more about the RAM truck here.

In this article, we shall focus on these two factors you will need to consider to make your purchase a lot easier.

About the RAM Truck

Let’s take a closer look at this very popular American truck brand. The RAM truck has a long history which started in 1932. It started out as a part of the trucks under the Dodge brand. Today, RAM Trucks is now a brand line on its own, manufactured by Fiat Chrysler Group LLC, an Italian, American auto manufacturer.

RAM Truck Models

There are a number of models available under the RAM truck brand and we will try to look at these and their specifications, so you can have what you need to make an informed decision. Some of the brands include: Ram 1500, Ram 2500, Ram 3500, Ram 4500 HD Chassis, and Ram 5500 HD Chassis.

Ram 1500

The RAM 1500 is a ½ ton, class 2a truck. This makes it a light truck with a weight limit of between 6,001–10,000 pounds.

You may want to take a look at the difference between the 1500 and 2500 in this video.

Ram 2500

The RAM 2500 is a ¾ ton, class 2b truck. It is also a light truck but with a higher weight limit than the class 2a. Its weight limit is between 8,501–10,000 pounds.

Ram 3500

This is a 1 ton, class 3 truck. Its weight limit is between 10,001–14,000 pounds.

Ram 4500 HD Chassis

The Ram 4500 is a class 4 truck which makes it a medium truck with a weight limit of between 14,001–16,000 pounds.

It is a model is designed to offer outfitters room to have custom cargo area, flatbed or whatever additions they need. This means it comes only with a cab and rear frame with industry standard width and wiring.

Ram 5500 HD Chassis

The Ram 5500 also comes with a cab and a rear frame for outfitters. It is a class five truck which means it is a medium truck with a weight limit of between 16,001–19,500 pounds.

Just in case you are not clear on what a cab and chassis (rear frame) is, read this for clarification http://www.dieselhub.com/compare/chassis-cab-vs-pickup-truck.html.

Aside from these trucks, you may also be interested in the vans such as the Ram Cargo, Ram ProMaster 1500, Ram ProMaster 2500, and Ram ProMaster 3500.

Choosing an Auto Dealer