According to Edmunds, in January, 82% of buyers paid more than MSRP for the new cars they bought.
Even well into 2023, car prices remain at record highs. As we know, this is due to the chip shortage a few years back. You may be wondering, why haven’t the car market in cities near me like Eatonton and Macon recovered yet? And that’s because on top of the chip shortage, car manufacturers have additionally been hit with massive supply chain issues. Creating a competitive market with very high demand and a limited number of available vehicles for sale. So we’ve come up with some tips to help you when buying a new car in this very competitive market.
1. Be wary of extra fees when car searching
Some dealers add on “Marketing Fees” or other additional fees that tend to pad the cost of a car. Be aware of these fees when you are looking at cars and be willing to walk away if these types of (bogus) fees are not removed. We have a commitment to our customers, and hidden fees are not something we do here at Butler Ford.
2. Be on the lookout for outrageous dealer markups
Similar to add on fees, you might see this tactic in addition to dealer fees. What is it? When a car dealer sells a vehicle at a price that is higher than the Manufacturer's Suggested Retail Price (MSRP), this is known as "overselling." This is typically in the form of a "market adjustment," which can range anywhere from a few thousand dollars to as much as doubling the price of the vehicle in some of the more extreme instances.
We won’t name names, but there is a certain Ford Dealer advertising as much as $10,000 off of F-150's but to be able to offer that heavy “ “discount”, they are artificially inflating the MSRP to trick car buyers in Macon.
It has been a contentious practice for many years, with some dealers arguing that it is essential to compensate for losses on other sales (or, today, to compensate for a lack of volume). We don’t believe this is the right way to treat our customers and would never take advantage of our customers this way. Our integrity simply won’t allow it.
3. Be flexible on which model, trim level and/or color vehicle you will get
Another tip when buying a car near Macon is to be flexible. Be prepared to look at some preowned vehicles through our Ford Blue Advantage Program if you’d like to save money. In this market, whether buying new or used, it’s very important to be open to color options, trim levels and even different models than what you may have initially considered. Of course, we supply a free car history report on used cars for transparency.
For more information, check out the Ford Blue Advantage Used Car Program
4. Do your research online to understand the average new car cost so you don’t get taken for a ride
By researching trusted sites like Edmunds.com and Cars.com, you’ll know the average cost for the vehicle you are considering, whether that is a new or used vehicle. Then armed with this knowledge, shop around for the dealer with the best price. You will have the peace of mind of knowing that you are not being taken advantage of in any way when you have some market pricing information.
We also recommend taking a look at the site Markups.org. The site is essentially a database that will tell you by dealership how much (if any) a vehicle is marked higher than the MSRP. See below what we were able to find on a quick search. This is a free tool, but you will need to create an account. (Note: we blurred out the names of the dealerships, but you’re welcome to check them out for yourself.)
5. Be willing to drive longer distances to find your next car
If you live in a bigger city like Atlanta, and you’re not finding the vehicle you want for sale or the price listed seems much higher than what’s reasonable. Expand your search area. Start with a smaller radius of 50 –75 miles and search from there. Some buyers drive four or more hours to find the car to suit their needs or even have them shipped across country! But, if you’re in Middle Georgia, you’re in luck, because our prices are the most competitive in the area.
No matter if you are looking for a new or used Ford we would love to help you find the right car at the right price for you and your budget. Please feel free to stop by our Milledgeville dealership and test drive one of our cars today.