Is It Better to Buy a New Car or Used Car with Such High Inflation?

Tips for Shopping for New Cars for Sale in This New Automobile Landscape

Out of all the hits that we took in 2021 and 2022, nothing has lingered quite like the inflation problem. As many will remember, the pandemic caused a myriad of problems ranging from staffing shortages to shipping delays to issues with supply chains.

It seems like everything is more expensive these days. Groceries, clothing, medicine – you name it – chances are, it went up in price. Unfortunately, the price hikes also include new and used automobiles. According to the U.S. Bureau of Labor Statistics (BLS), which is an authority on this issue, new car inflation is up 10.1% when comparing August of this year to August of last year. Additionally, the BLS reports that inflation on trucks and used cars is up 7.8% for the same time period.

What these numbers tell us is that it is significantly more difficult to shop for new cars for sale. So, what exactly is being done about it?

The Semiconductor Chip Issue and the CHIPS Act

The reason that new cars have gone up in price is because of the semiconductor chip shortage. For those not familiar, semiconductor chips are responsible for many of the safety and convenience features that modern cars have. Due to the shortage, some auto manufacturers are releasing their new vehicles missing certain non-essential features. Additionally, many auto manufacturers are releasing less cars than they did in previous years. Overseas shipping delays have also proven to be an issue.

However, there does appear to be a solution in the works. Recently, the Biden administration signed an executive order to address the semiconductor chip issue with the implementation of the CHIPS and Science Act of 2022. This act addresses a few issues: supply chain challenges, manufacturing jobs, and creating the infrastructure that is required to produce semiconductor chips.

Should everything go to plan, the CHIPS Act will create several domestic jobs in semiconductor chip manufacturing and effectively alleviate the semiconductor chip shortage. The drawback is that none of this will happen overnight. In fact, some experts are estimating it will take several years before domestic vehicle manufacturing gets back on track to pre-pandemic levels.

How to Shop for Used and New Cars for Sale at a Volkswagen Near You

Although inflation is at historic highs, many new and used car dealerships near you are trying to make the car buying process as painless as possible. In fact, Volkswagen SouthTowne is discounting all new cars $500 or more under MSRP during their Deflation Sale! So if you’re tired of inflated prices, now is the best time to get to Volkswagen SouthTowne.

In addition to discounts, Volkswagen SouthTowne is still offering incredible trade-in values for customer trades, making it a great time to upgrade to a new car. The second bit of good news is that many lending companies are allowing their borrowers to stretch out their loan repayment terms so that they can get low monthly payments on their cars. Although this results in a slightly higher interest rate, you will have more money monthly to put towards your budget for groceries, bills, and other essentials.

Another thing that you should pay attention to when shopping for new cars for sale is the overall cost of ownership. This includes things like repairs, routine maintenance, and service. A recent list provided by Savvy broke down the top 30 most expensive brands of cars to maintain for the first ten years of ownership. Brands like Cadillac and Mercedes-Benz were at the top of the list as the most expensive brands to maintain. Meanwhile, Volkswagen was near the bottom of the list in the #22 spot as one of the least expensive brands to maintain.

Finally, you’ll want to pay attention to the warranty when shopping for new cars for sale. Part of the reason that a new VW for sale cost so little to maintain over the years is because of our Carefree Coverage. It breaks down as follows:

• 2 yrs. Service – Scheduled Carefree Maintenance (2 years or 20,000 miles)
• 3 yrs. Help – Roadside Assistance (3 years or 36,000 miles)
• 4 yrs. Coverage – New Vehicle Limited Warranty (4 years or 50,000 miles)
• 5 yrs. Access – myVW Remote Access

When you visit the Volkswagen service center, Carefree Coverage will appear in your records, making the process simple and easy. It comes included on all late model VW vehicles.

Looking for a Used or New Car for Sale? Visit VW SouthTowne!

Now that you know a little bit more about what to expect when visiting a new or used car dealership near you, the next step is for you to find a great deal on a car or SUV that meets your family’s needs and is a thrill to drive.

Here at VW SouthTowne, we carry a wide variety of used and new cars for sale that are designed to fit any driving style, family dynamic, and budget. If you’re looking for a great deal, don’t forget to check out our great selection of certified pre-owned vehicles and our specials section.

Ready to test drive? The best way to get behind the wheel of a VW is by swinging by our dealership at VW SouthTowne, conveniently located at 11000 South 290 West. You can also call (801) 988-5825 to set up an appointment.

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