How to Lease A Car During the Great Car Shortage of 2022
Last Updated: May 11, 2022
If you’ve been to a dealership lately, you’ll know there’s an inventory crisis. The global microchip shortage has wreaked havoc on the ability for car manufacturers to deliver completed cars.
So, what do you do if you need a new vehicle right now? Can you still get the best deal? Here’s what you need to know.
Manage Your Expectations, but Still Shop Around
While prices on the whole are higher than they were a year ago, you’ll still find significant price variation for the same vehicle, depending on who is selling the car. Every dealer sets their pricing differently, depending on factors like inventory allocations and local demand.
These days, a “deal” might be finding the car you like, and paying full sticker price (MSRP) on it, as opposed to a four- or five-figure market adjustment. Given the inventory shortage, it’s actually more important than ever to shop wisely and do your research on pricing.
A great way to find data points on pricing is SIGNED! — a crowdsourced database of recently-signed deals. Be sure to also check the Leasehackr Marketplace for ready-to-sign deals from sellers who are active in the Leasehackr community. Dealers and brokers on the Marketplace know the Leasehackr audience well. As a result, their deals will likely be superior to the offers you’d get from walking into a dealership unprepared.
Leverage High Trade-in Values
These days, the hottest hack is getting equity out of your existing vehicle. Used car prices have skyrocketed due to the new car shortage. You might pay more for your new car, but at least you can leverage the high value of your existing ride.
If you’re currently leasing a car, do not simply return it at lease-end. Instead, contact the lender and ask for the current lease buyout price, and compare that amount with how much you could sell the vehicle for.
If your vehicle is worth significantly more than its lease buyout price, then a service like Equityhackr can purchase the vehicle directly from the lender — and cut you a check for the difference.
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Consider A Custom Order, Rather than Buying Off the Lot
In the past, the best deals came from existing inventory. Dealers had monthly sales targets, so the priority was on selling existing vehicles that could be sold immediately, rather than some uncertain date into the future.
Often, dealers would sell a portion of their existing inventory at a loss, in order to hit a lucrative monthly volume bonus from the manufacturer, or to secure more allocations of future inventory, particularly high-profit, in-demand models.
Now, the situation has changed completely.
Instead of chasing volume, dealers are now focusing on maximizing gross profit on the few inventory vehicles they have in stock. Dealers are counting on buyers who’ll pay a premium for immediate gratification — in the form of market adjustments and other mark-ups.
If your negotiations are going nowhere, then the trick may be to do a custom order.
Find a dealer or a broker who will do custom orders at MSRP. With a custom order, a dealer may be willing to accept a lower profit margin in exchange for the certainty that the vehicle will be sold the moment it hits the dealer lot.
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