Day: January 13, 2022

Inflation is driving up car prices. 6 tips for buying in 2022

By Betty C. Morrow 1 week ago

2021 was an unusual year for the automotive industry. While customer demand for new cars rebounded from the economic uncertainty of 2020, automakers found themselves unable to meet that demand because of semiconductor chip shortages and supply chain problems, and prices for both new and used cars skyrocketed. 

So what should car shoppers expect for 2022? Much of the same, unfortunately.

“Competition for new vehicles will be fierce as inventory shortages persist in 2022,” said Ivan Drury, senior manager of insights for the auto website Edmunds.

Along with shortages and supply chain issues, drivers also have inflation to thank for continued price hikes for cars in 2022. Overall consumer inflation soared 7% in 2021, the biggest increase in nearly 40 years, the Labor Department said on Wednesday. Used car and truck prices, a main driver of the surge, shot up 37% last year, with the average used vehicle now costing

… Read More

Average new car price hit record $47,077 in December

By Betty C. Morrow 1 week ago

Check out what’s clicking on FoxBusiness.com.

The car business is on a streak, but it’s bad one for consumers.

Auto dealership

Auto dealerships have record low inventories. (Jeff Gritchen/MediaNews Group/Orange County Register via Getty Images)

The average price paid for a new vehicle set a ninth-straight monthly record in December of $47,077, according to Kelley Blue Book.

New car incentives have hit five-year lows. (Jeff Gritchen/MediaNews Group/Orange County Register via Getty Images)

Low inventories caused by ongoing supply chain issues combined with high demand driven by an improving economy have reduced incentives to a five-year low and driven automakers to prioritize production of their most profitable models.

Lots at many dealerships are nearly empty, forcing operators to park the vehicles they have in strategic positions.

Lots at many dealerships are nearly empty, forcing operators to park the vehicles they have in strategic positions. (Jeff Gritchen/MediaNews Group/Orange County Register via Getty Images)

“December typically is the best month for luxury vehicle sales, and 2021 followed that trend in a big

… Read More

Car Capital scores $150 million in backing for its instant car loan approval technology

By Betty C. Morrow 2 weeks ago

A large New York private equity firm is providing a $150 million credit line over the next three years to a Grapevine startup that makes it easier for auto dealers to make instant vehicle loans, regardless of credit history.

Car Capital announced the “milestone transaction” Tuesday with affiliates of Fortress Investment Group. Fortress also is investing over $6 million in the company.

The equity and debt investments will let Car Capital fund more dealers and “underserved consumers” wanting to buy vehicles, according to the company. Its proprietary Dealer Electronic Auto Loan System allows dealerships to instantly approve 100% of customers.

“We are very pleased to partner with Fortress, [which] has a long history of providing capital to fintech and automotive companies,” Car Capital co-founder and CEO Justin Tisler said in a statement.

Fortress Investment Group, founded in 1998, had more than $54 billion in assets under management as of Sept.

… Read More