Should I buy a car now or wait?

Should I buy a car now or wait?

Buying a car remains a challenge amid record high inflation, lack of support and rising interest rates. Since the start of the Covid-19 pandemic, prices for new and used cars have skyrocketed, leaving buyers with limited options to find affordable cars.

according to Kelly Blue BookThe average price for a new car hit an all-time high of $48,301 in August — an increase of nearly 11% over last year. With another rate hike expected from the Federal Reserve soon, a new car quickly became a luxury that Americans couldn’t afford.

However, there are still some signs of hope for those looking to buy an affordable car this year. Below, Select takes a closer look at how consumers can find the best deals without spending more than their budgets allow.

Subscribe to our newsletter!

Our top picks in your inbox. Shopping recommendations that help improve your life, delivered weekly. Register here.

How to strategically buy a car in 2022

Of course the real question is: Should you buy a car now or wait until 2023?

Zach Shevska, Co-Founder and CEO of YAAAn advocacy site for car buyers says you should wait to buy a car because prices will still be high due to low inventory.

according to A recent report from Cox Automotive, the number of new and unsold vehicles available stabilized at 1.09 million. While this was a technically a slight improvement over the 1.07 million vehicles available last year, the numbers are still close to what they were before the pandemic, when there were 2.55 million readily available vehicles in July 2020 or 3.69 million vehicles available in July 2019 .

Unfortunately, Shefska says it will be a long time before manufacturers can get that number back up, but there are several ways to give yourself some advantage when it’s time to buy your next car if you simply can’t wait any longer.

Strongly track car prices before buying

First, Shefska recommends doing some solid research on the vehicle you like and looking for other similar vehicles that have recently been sold in your area – the more research you do, the more confident you’ll feel when entering a dealership. You can find free tools to do this on websites like YAAAnd the CarGurus And the Cars.com.

If the dealer references your desired price point, mention your research on local and comparable offerings. If they keep putting pressure on you and giving you no leeway, consider taking the same search to a different dealer and try again there.

Buyers have leverage for some used vehicles

Shevska also says used car prices have fallen since the beginning of the summer and may continue to fall. That’s because wholesale prices have come down, paving the way for agents to also be able to lower their prices. However, there was a slight spike in midsummer, bringing the average used car price to just over $28,000 in July 2022.

Kelly Blue Book It states that real savings can be made when it comes to buying larger vehicles such as SUVs and vans as consumers have moved away from less efficient vehicles amid the recent rises in gas prices. Meanwhile, it can be difficult to find savings on small cars.

According to Shefska, if you’re in the market for a used car, consumers will be in the driver’s seat. He highly recommends shoppers keep track of vehicles that have been sitting in the parking lot for more than 60 days — the longer the vehicle stays there, the more incentivized the dealer will be to sell it.

Come to the agency with financing or cash in hand

Car dealerships are known to make big profits by pairing their cars with loans on their premises. By entering into a deal funded by your local bank or credit union — or with cash on hand — you’ll have a lot of leverage to negotiate the price of the car.

To find a car loan in your area, you should first check to see if your bank or credit union offers it. It is also best to shop online so that you can find a lender with the best available interest rate and repayment terms that suit you.

If you have good to excellent credit, consider working with one of the following lenders for your car loan, since they all offer a reasonable annual interest rate, or APR:

Select details the pros and cons of using a personal loan versus a car loan when buying a car. You can check the Personal Loan Market at Select to compare loans and find the best rates and terms for you.

Before applying for a new car loan, check your credit score to see if you qualify for a low interest rate loan. You can also check and monitor your credit score with one of the following credit monitoring services:

credit chase trip

  • cost

  • Monitoring credit bureaus

  • Credit account form used

  • Dark web scan

  • identity theft insurance

CreditWise® from Capital One

Information about CreditWise was collected independently by Select and was not reviewed or provided by Capital One prior to publication.

  • cost

  • Monitoring credit bureaus

  • Credit account form used

  • Dark web scan

  • identity insurance

American Express® MyCredit Guide

  • cost

  • Monitoring credit bureaus

  • Credit account form used

  • Dark web scan

  • identity theft insurance

Positives

  • Scoring allows you to set your desired credit score and get personalized recommendations on the best ways to improve it
  • Has a credit score simulator

Negatives

  • Monitors only one credit bureau report
  • No dark web scans
  • Do not offer identity theft insurance

Finally, if you’re planning to buy a car with cash, it might be wise to store your money in a high-yield savings account, which offers an above-average APY, so you can grow your cash a little faster. Determine the rating of these accounts as among the best:

LendingClub High Yield Savings

LendingClub Bank, NA, FDIC Member

  • Annual Percentage Return (APY)

  • Minimum balance

    There is no minimum balance required after $100.00 to open the account

  • monthly fee

  • Maximum Transactions

  • Excess transaction fees

  • Overdraft Fee

  • Offer a checking account?

  • View ATM Card?

Marcus by Goldman Sachs Online High Yield Savings

Goldman Sachs Bank USA is a member of the Federal Insurance Corporation (FDIC).

  • Annual Percentage Return (APY)

  • Minimum balance

    nothing to open ; 1 dollar to earn interest

  • monthly fee

  • Maximum Transactions

    Up to 6 free withdrawals or transfers per statement cycle * Withdrawal limit for 6 cycle / statement of account is waived during the Coronavirus outbreak under Regulation D

  • Excess transaction fees

  • Overdraft Fee

  • Offer a checking account?

  • View ATM Card?

minimum

As long as the car market continues its slow recovery, prices will remain severely inflated. As a result, Shevska says that if you absolutely do not need to buy a car at the moment, it is better to wait.

In the meantime, consider using public transportation more or commuting via shared transportation services if you have one Budget allows. If you must buy a car this year, check your credit score and bank account first to see what you can afford without neglecting any other financial responsibilities.

Editorial note: The opinions, analyses, reviews or recommendations in this article are those of the selected editorial board alone, and have not been reviewed, approved or otherwise endorsed by any third party.

#buy #car #wait

Leave a Comment

Your email address will not be published.