IRVINE, Calif., May 24, 2021 /PRNewswire/ — As Memorial Day weekend approaches, bringing along one of the most popular car-buying weekends of the year, shoppers face a difficult marketplace with low vehicle inventory supply and record high prices due to strong consumer demand. Yet despite the challenging market conditions, car shoppers remain undeterred as they continue to buy cars at a record pace. Likely fearing even less choices and higher prices in the months ahead, new data from Kelley Blue Book reveals that car shoppers clearly are in buy-now mode.
“Shoppers are expecting high prices and limited choices, and that’s exactly what they’re finding,” said Vanessa Ton, senior industry intelligence manager for Kelley Blue Book. “But even with the tough buying conditions, Kelley Blue Book’s data shows most consumers expect to push ahead with a purchase, even in a difficult and competitive marketplace.”
The latest research from Kelley Blue Book reveals Americans are aware of the rising demand for cars as supply continues to fall, and 73% of in-market car shoppers said they expect to find higher prices than in a normal market. Heading into the big Memorial Day sales weekend, more than 60% of consumers said they are not planning to delay their vehicle purchase. In addition, 42% of shoppers expect to pay over sticker price for a new vehicle, and nearly 60% expect to find lower incentives. The current conditions are not changing people’s minds on what to buy, either. Despite high prices most consumers are not considering smaller or less expensive vehicles, as 81% of shoppers said they plan to stay in their intended segment. Only 37% of car shoppers said that high prices and lower incentives would likely delay their purchase, and of those willing to wait, 70% expect to sit the market out for three months or more.