The supply is up and that "new car price" is stable if buyers are willing to pay
ST. LOUIS PARK, Minn. — It may have a bow on it but that doesn't mean they're giving it away.
This new Alfa Romero Tonali Hybrid still caught Les Everhart's attention. "I've subscribed to Hot Rod Magazine and Car and Drivers since the late 60s," Everhart said. "So I've always been a car nut."
Today Everhart says he's just looking. Just as he's done for the last three years. "I've been retired now for a few years and I'm in a situation where with the inflation, also the income is not rising like it used to."
For many Minnesotans like Everhart, the car market hasn't been like it used to be for a long time. The pandemic wreaked havoc on the global supply chain. At the same time, Americans were gifted with stimulus cash. That perfect storm is over according to car dealers and instead, something else is brewing. Supply is up but so are interest rates. Tons of cars but not a lot of buyers. Something has to give.
"We got about 30 days of inventory now on the lot," said Scott Lambert of the Minnesota Automobile Dealers Association. "And the problem is it's a lot of 2023 and 2024 is right around the corner."
So check out these deals. $3000 off and 1.9% financing for the 2023 Electric Ford Mustang. Zero Interest for a 2023 Mazda. The same for an all-electric 2023 Subaru.
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"There's enough product on the lot to satisfy customers," said Lambert. "If you want to be fussy and order something special, if you're into something really particular. You're gonna have to wait."
Les Everhart promises he'll still be waiting, anyway. There's one pre-pandemic change that seems like it's never coming back.
"You take an average cost of a car four years ago I think was about $22 thousand? Now take a look at what they are," Everhart explained. "Even at 0% divided by 60 months, that's a steep price."