As consumers flock to car dealerships this weekend to take advantage of Fourth of July deals, they should prepare for some fierce competition.
“If you want to buy a car, get out there quickly and get the deal done,” said John Vincent, senior reporter at U.S. News and World Report. “There are shortages across dealer lots.”
The shortage of cars is driven by a shortage of microchips, he said.
During the pandemic, as more people worked from home and the demand for cars plummeted, chipmakers pivoted away from cars and toward computers and tablets.
Microchip shortages caused auto factories to shut down, which led to fewer cars available on dealer lots.
Now, those trends are shifting back. “There’s a strong demand for people to get back to work and start taking road trips again,” said Vincent. But while demand for new cars is rising, inventory remains low.
On Wednesday, U.S. News and World Report published their rankings for the Best Fourth of July Car Deals. The 2021 Honda Civic, 2021 Hyundai Elantra Hybrid and the 2021 Toyota Avalon Hybrid top the list.
The list includes five SUVs, two compact cars, two hybrid cars and one electric car. The deals range from 0% financing for 6 years for the 2021 Kia Sportage to up to $3,500 cash back on the Avalon Hybrid.
The most pressing customer concerns, Vincent said, are affordability and practicality: “You can’t get a good deal unless you’re getting a good car.”
You can view the complete list of the Best Fourth of July Car Deals on the U.S. News and World Report website.