SUVs, trucks in the ‘wait to buy’ category
It's a seller's market. According to an analysis from assisted commerce car buying app CoPilot, the pandemic has driven new- and used-car inventories to historic lows.
“As a consequence, buyers face limited selection and little leverage in price negotiations in most categories. If a buyer balks on price, sellers know they can find another buyer,” CoPilot said in a news release.
CoPilot just published its February Car Buyer’s Guide, which features CoPilot’s analysis of more than 4 million cars currently for sale online and compares the relative supply and demand for all major vehicle types.
Compared with a year ago, six of eight popular used-vehicle categories are in short supply. The pandemic's historic impact on used and new auto inventories might not abate for months.
Additional analysis from the guide: Inventories of brand-new cars and trucks began a slight stabilization in January. But selection is still limited, CoPilot said. Buyers are paying attention to sticker prices for popular models and often face long waits for delivery.
CoPilot also said buyers should wait for better prices and more selection later this year, if they can.
“But given current inventory levels and supply chain disruptions from the pandemic, it's not clear when that will happen, nor which vehicle categories will be first to replenish,” CoPilot said.
If the buyer can’t wait to buy, he or she should pay attention to current pricing and inventory trends. Consider something less popular than trucks, SUVs and crossovers.
Some relatively good buys are out there, but those are the exception.
CoPilot says it can help buyers find good deals, noting that its proprietary “Google for Cars” search platform features strong vehicle and market data.
The company describes the CoPilot app as a car buyer’s expert partner. It aims to help buyers navigate every step of car shopping and buying. Each user's CoPilot scans more than 46,000 websites several times daily in search of their perfect car. The company’s 600 million analytical pricing models provide insight on what and when to buy, and at what price.
Additional insight from the buyer’s guide shows that the popularity of SUVs continues to surge.
“Suburban parents, please form a line,” the buyer’s guide said, placing SUVs in the “wait to buy” category.
Buyers will find it challenging to negotiate sticker price concessions on popular SUV models right now. Buyers should wait for better selection and more negotiating leverage on price.
CoPilot also puts trucks in the “wait to buy” category, noting that record low interest rates and low gas prices have made trucks tough to find. Wait to buy crossovers as well. They continue to surge in popularity, so selection will be limited awhile longer.
Hatchbacks, on the other hand, are in CoPilot’s “buy now” category, because dealers had too many on their lots in January. It’s a good time to buy a 2021 hatchback. On older models, buyers probably won’t find adequate selection or negotiating flexibility. The highest current demand is for the Toyota Prius, Honda Civic, and Subaru Impreza.