New car prices are expected to remain high until November, as cash for clunkers depleted inventories and caused prices to increase
Supply versus demand caused new car prices to go up following the cash for clunkers program
Experts say to wait to buy until November, when dealers replenish their inventory and prices go back down
Vehicle Prices Expected to Remain High Until November
By Liz Opsitnik Thursday, Aug 27 2009 13:06
During the popular cash for clunkers rebate program, inventory dwindled down to low levels, as almost 700,000 consumers bought a new car. Dealers who had too much inventory on their lots before the government program started now don’t have enough.
Supply versus demand caused vehicle prices to increase. And until manufacturers send dealers a supply of new cars to replenish the ones sold during the CARS program, expect to pay a premium for a new car if you must buy now.
Auto industry experts say that for September and October, usually peak car buying season, inventories will be low, there will be fewer choices and shoppers should expect to pay higher prices, CNNMoney.com reports.
After dealers receive their shipments of new cars, the prices should fall to pre-cash for clunkers levels, as demand drops and supply increases. Experts say if you wait until November and December to buy a new car, you’ll be able to take advantage of better incentives and bigger discounts, as that time of year is typically slow for car sales.
If you didn't get to participate in the government's cash for clunkers program, experts say you should wait to buy a new car until November, as inventories are low right now and prices are high.
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