The car shortage is officially over.
Supplies of new cars are at a four-year high, which is also boosting used car supply, data show. Unfortunately, that doesn’t necessarily mean lower prices, experts say.
Total new-car inventory on the Cars.com marketplace rose to 2.32 million vehicles throughout May, the highest level since December 2020, the car comparison site said. However, prices remained steady at approximately $49,000, consistent for the past eight months but down from June 2023’s high of $50,300.
Those elevated prices, coupled with high interest rates, likely means shoppers will still experience sticker shock.
“You can find the right car that you want now,” said Ivan Drury, director of insights at car platform Edmunds.com. “The problem is, are you going to find the right financing that kind of seals the deal for you?”
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Why are new car prices still so high if there’s more supply?
Cars are fancier now. All those big touch screens, mirrors and automatic features are expensive, Drury said.
“As production has come back and inventories are at a four-year high, I haven’t seen prices come down as much as I had hoped,” said Kevin Roberts, director of industry insights and analytics at car comparison site CarGurus.
Is it a bad time to buy a car?
Not necessarily. It depends on what you’re looking for, experts say.
“If you’re out in the market, you’ll see some positive changes, with more…
