 TITLE: Is Now a Good Time to Buy a Car? CONTENT: Why Now May Not Be the Right Time to Buy a Car\n----------------------------------------------\nIf you don't need a new car right now, waiting might make sense. That said, it's not clear how long it'll take for prices and inventory to return to normal.\n### Prices Are Sky High\nMismatched supply and demand has led to high prices for new and used cars alike.\nOn the demand side, some people are flush with cash and looking to buy a vehicle for a return to commuting or vacations they may have put off during the pandemic. Additionally, rental companies that sold off fleets during the pandemic are also trying to fill up their lots to meet vacationers' needs.\nOn the supply side, many auto manufacturers are dealing with shortages and delays. In particular, there's a microchip shortage that may last for months—and potentially much longer. Hundreds of thousands of vehicles are being delayed due to the lack of chips. In some cases, manufacturers have vehicles almost completely assembled, but they're sitting in lots waiting for the chips to be installed. According to Car and Driver, the models most affected by the shortage include the Ford F-series, the Jeep Cherokee and the Chevrolet Equinox, though many other makes and models have been impacted.\nA June 2021 forecast from J.D. Power and LMC Automotive shows the average price for a new car is expected to be $38,088. That's about 10% higher than last year and about 14% higher than in 2019.\n### Limited Availability\nIn addition to pushing prices up, the increased demand and limited supply may make it difficult to find the exact vehicle you want. This is especially true if you're looking for a new truck or SUV, which tend to be more popular than other vehicle models.\nIt can also be difficult to find affordable used cars today. Consumers may be turning to the used market when they can't find a new vehicle they like or can afford. Rental car companies are even snatching up used cars—a complete shift from the standard practice of selling off the older vehicles in their fleets.\nThere have also been fewer repossessions, which further limits the availability of used cars. And the Great Recession is having a lingering effect, as there are fewer available used cars from the 2009 to 2013 period.\n### Limited Dealer Incentives\nDealers often offer incentives to customers buying new cars, such as low-rate or 0% financing offers, lease specials and cash discounts. Generally, you need to finance the purchase with the manufacturer's financing arm and have good to excellent credit to qualify.\nBut even those who would usually qualify may find there aren't as many incentives available. J.D. Power's June 2021 report shows average incentives per unit are expected to be $2,492—a nearly $1,500 decrease from June 2019. END