GREENSBORO, N.C. — Buying a car for a good price is always a negotiation between you and the seller. But what happens when more people need a car than there are cars on the lot. Unfortunately, the price goes up and you end up paying more.
Money expert Ja'Net Adams says it's a classic example of supply and demand.
"Cars have become a hot commodity over the last year. With people flying less they are looking to purchase cars so that they can travel by land. But there are not a lot of cars on lots and the available cars currently have a higher price tag," said Adams, who wrote the book, The Money Attractor.
If you are looking to buy a car Adams shared three ways that you should be preparing yourself and your bank account.
1. The Chain Is Broken:
"Supply chain issues are happening all over the world. Ships are stuck out in the ocean and many items needed to make our lives run smoothly daily are delayed. The car industry has become a victim of this as well. There has been a computer chip shortage over the past year and it has caused a delay in the completion of cars. This shortage has caused new car prices to rise which is making it harder for people to buy a car," said Adams.
2. Save Your Money While You Wait:
"Since there is a shortage of cars and the cars that are available cost more than usual that gives you more time to prepare for a purchase. That preparation comes in the form of saving your money. Many times people go to buy a car with no money to put down on it. Since you know there is a shortage of cars, this is your time to take the next few months to save as much money as possible for the car you eventually find. The more money you bring to the table the better you can negotiate a great price."
3. Be Ready:
"There will not always be a shortage in new and used cars. Eventually, the supply chain will get back to normal and production will rebound. When the rebound happens the supply of cars will increase which means the prices will start to go down. When that happens you want to make sure you have your money together so that you can get the car you want before someone else gets it. You don't want the deals to come out and you miss them."
Adams says there's no early indication on when things will turn around as industry experts predict new and used car inventories could remain slow through next year.
You can connect with Ja'Net Adams or get more money tips here.