With car lots sparse, shoppers forced to settle

The most desirable new vehicles are selling before they even hit dealerships. Used-car prices are through the sunroof. And automakers worldwide are idling plants and cutting capacity as they wait for more desperately needed chips to be delivered.

Instead of the more typical dealer discounts, markups are spreading to new cars, and for hot models like the Chevrolet Tahoe, $10,000 would not be out of the question. Shoppers, confronting a market that should have millions more new cars on the road this year, are shrugging and paying up.

With dealer lots cherry-picked and sparse, many car buyers have been forced to reconsider their choices and kick the tires of overlooked models and brands. Some are settling for paint colors they would normally dismiss. Others are turning from new to used. People are rethinking their transportation coming out of the pandemic and even changing the way they buy a vehicle.

At the moment, paying the suggested retail price on a new car might be a bargain. Can you wait a year? Then hold back, even if it means putting money into your current ride.

“It’s a bad time for consumers wanting a new car,” said Stephanie Brinley, principal analyst with IHS Markit. “In 2021 the lost global automotive production is at 6.58 million units through the third quarter.”

Inflation has been running hot this year, and used-car prices are a key culprit. A report Wednesday showed little sign that consumer prices were cooling, although used-car prices, after a huge run to start the year, have begun to ebb in the Consumer Price Index.

Can’t put off an automotive purchase? With mixed emotions, many shoppers are casting a wider net. There is evidence that brand loyalists are venturing from their comfort zone out of frustration. Or necessity.

In Seattle, Ed Wood, a 63-year-old electrician, wants to replace his 1995 Chevrolet pickup, fully understanding the timing is awful.

“My uncle is getting his affairs in order and offered to pay the lion’s share for a new one,” he said. “He wants to see me happy.”

Loyal to Chevy’s Silverado, Wood could not find one. Little by little, he widened his search to dealers in Idaho, South Dakota and Texas.

“All sold out,” he said. “I went around and around with dealerships, then branched out to F-150, Ram, Sierra and Tundra and found either no stock available or crazy markups.”