{"id":126751,"date":"2021-05-28T17:43:27","date_gmt":"2021-05-28T17:43:27","guid":{"rendered":"https:\/\/precoinnews.com\/?p=126751"},"modified":"2021-05-28T17:43:27","modified_gmt":"2021-05-28T17:43:27","slug":"car-shoppers-seeking-memorial-day-deals-face-high-prices-few-discounts-and-low-inventory","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/business\/car-shoppers-seeking-memorial-day-deals-face-high-prices-few-discounts-and-low-inventory\/","title":{"rendered":"Car shoppers, seeking Memorial Day deals, face high prices, few discounts and low inventory"},"content":{"rendered":"
Car shoppers hoping to cash in on Memorial Day weekend sales events may want to rein in their expectations.<\/p>\n
On top of reduced inventory due to a shortage of microchips \u2014 key parts needed for today's autos to operate \u2014 and unrelenting consumer demand pushing prices higher, there are fewer incentives being offered by manufacturers and dealers.<\/p>\n
The average incentive is $2,957, down from $4,825 in May 2020 and $3,878 in May 2019, according to a new forecast from J.D. Power and LMC Automotive.<\/p>\n
"People will be in for a bit of a surprise," said Ivan Drury, senior manager of insights at Edmunds.com. "There will be little to no negotiation on price.<\/p>\n
"We're seeing more people pay sticker price or above."<\/p>\n
At the start of the pandemic more than a year ago, when dealerships and manufacturing plants were shut down, chipmakers pivoted to focusing on the consumer electronics industry \u2014 i.e., computers and gaming consoles \u2014 and there are still kinks in their ability to meet the renewed demand from automakers.<\/p>\n
Some automakers have idled manufacturing plants or cut back production of certain models, or stopped including certain high-end packages \u2014 things like navigation systems or blind-spot detectors \u2014 in vehicles that typically would have them, Drury said.\u00a0<\/p>\n
"The shortage is really kicking the legs out from under the industry," Drury said.<\/p>\n
More from Personal Finance:<\/strong> In May, an estimated 33% of vehicles are selling within 10 days of arriving at a dealership, according to new estimates from J.D. Power and LMC Automotive. That compares to 18% selling that fast in May 2019.<\/p>\n Additionally, car shoppers may struggle to find the car they really want. To that point, 40% of car shoppers say they're facing that problem, according to a recent survey from Cars.com.<\/p>\n "If you're picky, this may not be the right time to buy," Drury said. "But if you're open-minded \u2026 you'll be in a better position."<\/p>\n Of course, it's uncertain when the squeeze on inventory will lessen.<\/p>\n "By the end of year, things will start to improve," Drury said. "But we'll be nowhere near normal levels."<\/p>\n The average price paid for a new car is close to $40,000, according to Edmunds.com. For used cars, it's above $23,000. Some of the increase in prices are due to consumer preferences shifting over the last decade to pricier pickup trucks and SUVs and away from lower-priced sedans and small cars. Improved technology and safety features add to the price, as well.<\/p>\n
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