Car Prices Are Soaring, Toyota Asking for $10000 Over MSRP!

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Car Prices Are Soaring, Toyota Asking for $10000 Over MSRP!
Jennifer Miller

Sep 21st 2021 07:58 am

Toyota Honda Hyundai Ford Tesla you name it, everyone is raising the prices of their vehicles, both new and used. The average new car price hit a record $38,255 in May 2021, up 12% from the same period a year ago. Some popular cars are seen with unbelievable increases. The "Dealer adjustment" is usually the special discount at the dealership to lure customers in, but now it's showing a positive number. A local Toyota dealer was seen selling the 2021 RAV4 Prime with a "Dealer adjustment" of $9999. Tesla has been increasing the price on their Model Y by $500 every 2 weeks. Ridiculous?

Why are car prices rising?
Simple supply and demand.

Lack of supply
Computer chip shortage caused by the Covid slowdown at the factory and huge demand from everyone buying At-Home computers / devices.

Pent-up demand
Everyone stayed home the last 2 years. Now everyone's going back to work, going to school, going on vacations, getting out. All the people that would've bought cars in the last 2 years are all rushing in at once. The amount of money handed out and low interest rates adds to the trouble.

CEO Elon Musk has recently explained that the price increases are due to "major supply chain price pressure industry-wide."

When will be the automobile prices be normal again?
Many speculate the supply will catch up to the demand by the end of 2021. I spoke to my local car dealership which agreed by the end of the year. There are signs that price increases are starting to peak.

How do I take advantage of this situation?
This is the first time in history that used cars have gone up in value. If you have any automobiles that you don't need sitting around, NOW would be a good time to sell them.

Check KBB to see your used car's value

Your car's value is higher now than it was a year or two ago!

In some cases, used cars are even going for higher than MSRP.

Don't believe it? Need Proof?
You can talk to your local car dealership. The photo above is provided by Toyota of North California

Please ask your question or comment below

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  • Guest
    Guest - 1 month ago
    Wait until the price goes back to normal. If you don't need the car before, you don't need it now. Save the $$$ and ride out the pandemic. If you buy a $30K car now, when you sell it a year from now, it will be worth 20K.
  • Guest
    Guest - 3 months ago
    Melony is so hot I’d buy that Acura just to meet her lol
  • Guest
    Guest - 3 months ago
    Toyota has been doing this since the 80's. Maybe others but I remember looking at 4runners in the late 80's and there was a smaller 'extra' sticker next to the large window factory sticker that added another 5K to the price at the time. I never have owned a 4runner.
  • Guest
    Guest - 4 months ago
    My 2017 Roush Stage 3 Mustang went from $55K purchase price 3 yrs. ago to now at $66K. Car is too much fun to drive to sell now. Might sell for 2021 Hellcat.
  • Guest
    Guest - 4 months ago
    face masks, hand sanitizers, computer parts, fitness equipment, stocks, cryptos and now cars. What's next?
  • Spoofee
    Spoofee - 4 months ago!
    I agree to not buy from Dealerships asking for $3000-10000 more. Dealerships (not factories) are price gouging and coming out as the winners here, but even private sellers use KBB or similar sites to price their cars which have upped the price.
  • Guest
    Guest - 4 months ago
    Prices up because of supply and demand!? Car lots are always full of various models. This is nothing more than price gouging. Buy used from private parties.