This is not the best time to buy a new car. Dealer inventories remain thin due to production constraints caused by supply chain shortages, and automakers are having to build models without some key features whose components have been unavailable to keep assembly lines running.
For example, we recently tested a Chevrolet Silverado 1500 that had a sticker price tag of $25 for the lack of a heated steering wheel (promise to retrofit it later). The $112,000 Cadillac Escalade we drove showed a $50 credit for not being equipped with an electronic steering column lock. Other items commonly left over from the introduced models to ease production include infotainment touchscreens, wireless charging mats, heated seats and some audio systems.
And that’s if you can find the vehicle of your choice in stock at all. Ordering it from the factory is an option, but it’s hardly a practical solution for those who need the car sooner rather than later, especially if the current drive is about to end its lease or undergo major repairs.
Incredible supply and demand issues, as any Economics 101 student could attest, pushed prices up significantly. According to Kelley Blue Book, the average conventional brand vehicle sold for $43,942 last month, the highest transaction price. Luxury models cost an average of $66,476, which is about $1,100 above their MSRP. Increased gas prices (impossible) increase the demand for electric and hybrid vehicles. Electric vehicle transaction prices are now nearly 14 percent higher than they were a year ago, with hybrids costing $8,453 more than they did in mid-2021.
Of course, not all factory-built cars, trucks, and SUVs are in short supply and can command such high markups. Some brands are hotter than others, again due to lingering supply and demand issues. KBB says that while new cars from Honda, Kia and Mercedes-Benz topped sticker prices by an average of 6.5 to 8.7 percent in June, Buick, Lincoln and Ram sold about one percent less than their average price.
Obviously, the models with the shortest supply in the mall due to lack of in-carry inventory and/or high demand will not only be the hardest to find, but also the hardest to drive off the lot at any discount. Buyers will find the biggest markup on hot models like the Ford Bronco SUV, which has been in such high demand that dealerships have stopped taking orders for 2022 models. To determine which new vehicles are currently in the most demand and shortest supply, automotive website iSeeCars.com looked at more than 224,000 sales in June. transactions to determine how many days a particular model is in a dealer’s inventory before being sold.
In that regard, the best ride, the Subaru Crosstrek subcompact SUV, has been in storage just 12.9 days before it left the lot. The industry average is currently 37.2 days, while 50 days was considered typical in the pre-pandemic era. Below are the 20 fastest sellers.
It’s more or less the same story at the back of the used car lot, where EVs, hybrids and small cars sit in storage at the shortest intervals. According to iSeeCars.com, the Tesla Model Y crossover tops that list, averaging 24.9 days before it goes on sale. Other rare models include the Tesla Model 3 and Model X, the Toyota Prius and Prius Prime, and the all-electric Ford Mustang Mach-E. Confirming the current demand, we saw that in 2021 The Mach-E has been listed on used vehicle sites at a staggering rate. Another $17,000 than original sticker prices.
In the meantime, car buyers are advised to remain opportunistic and keep an open mind, as well as their wallet, to find something as close to their chosen attractions as they want. “It is expected that by 2022 new car inventories will remain tight as microchips are still in short supply and automakers are struggling to meet the lingering demand,” said Karl Brauer, executive analyst at iSeeCars. “Buyers should act quickly if they want to sell their vehicle, and buyers will likely need to be flexible with the color and trim options available on popular models.”
Meanwhile, according to iSeeCars.com, here are the fastest-selling new vehicles on the market right now, where buyers should expect low inventory and high prices, with average days-to-sale periods and transaction prices:
- Subaru Crosstrek: 12.9 days; $30,299
- Honda Civic: 14.1 days; $26,480
- Subaru Forester: 14.7 days; $34,319
- Honda CR-V: 17.7 days; $34,698
- Subaru Impreza: 18.5 days; $24,881
- Kia Telluride.: 18.6 days; $46,447
- Kia Forte: 18.6 days; $23,084
- BMW X3: 19.4 days; $52,079
- Ford Bronco: 21.5 days; $57,579
- Hyundai Tucson hybrid: 22.3 days; $36,371
- Subaru Outback: 22.9 days; $37,942
- Kia Sportage: 22.9 days; $33,967
- Toyota RAV4 hybrid: 23.7 days; $36,767
- Nissan Kicks: 23.7 days; $24,277
- Jeep Wrangler Unlimited: 24.1 days; $55,043
- Chevrolet Trailblazer: 24.1 days; $27,523
- Mercedes-Benz GLE: 24.7 days; $75,240
- Toyota Camry: 25.9 days; $30,998
- Jeep Wrangler Unlimited (Hybrid): 25.9 days; $62,731
- Toyota Highlander: 26.4 days; $46,332
You can read the full study here.