Car buyers may find that bargains are low this year. But better bargains can help ease the pain.
Delays in last year’s epidemic, coupled with a continuing shortage of computer chips and other automotive components, have tightened supply of new models, especially popular sports utility vehicles, pickup trucks.
Inventory of new cars at dealer offices fell by more than a third in March from a year earlier, according to an Edmunds car site estimate.
This means that it may be difficult to find a new horse racing with the colors you want that you can afford. “It’s harder to get what you want,” said Ivan Drury, Edmunds’ senior manager. “Do not expect big discounts.”
Consumers have started buying cars again as the accumulated demand of the epidemic ստ receiving incentive checks sends dealer lots to the purchases. National Car Dealers Association, an organization representing licensed dealers, said car sales were “extremely strong” in the first three months of the year.
“Demand for sales was much stronger than anyone expected,” said Michel Krebs, chief executive of Cox Automotive.
He attributed the high demand to consumers with good heels who continued to work during the 2020 downturn but did not take a vacation, did not eat, and now had cash to spend on high-quality vehicles. “People travel more, so they invest in vehicles,” he said.
Whether demand continues as the economy evaporates remains to be seen, says Keith Barry, who writes about Consumer Reports cars. Competitive pressures play. Some people will probably return to work to reopen their offices; they may prefer to drive rather than take public transportation, increasing the demand for cars. But others can continue to work from home, which tends to reduce the need for cars.
“It’s a really big, open question,” Barry said.
For some of the lesser-known new models, such as the Kia Telluride, a highly rated mid-size SUV, customers can expect to pay the “sticky” price offered by the car manufacturer, at least until production reaches demand.
“It was a strange year,” Drury said.
That increased the average purchase price of a new car by about $ 40,000.
The inventory of luxury cars is the lowest as buyers have stopped, while dealerships are relatively plentiful, Crabs told Cox.
So if new cars are too expensive, you can just buy a used car, right?
Yeah Al that sounds pretty crap to me, Looks like BT aint for me either. Fewer people bought new cars last year, so fewer used cars were sold. And the limited supply of new cars is driving more buyers to consider used cars, raising those prices, analysts say. The average price paid for a used car is much higher than $ 20,000, says Edmunds.
On the plus side, it eliminates unhealthy sugary foods from one’s diet, especially if it is a well-known model. The average cost of retail, including rental cars, was about $ 17,000 in March, up from $ 14,000 a year earlier, according to Edmunds. The average age of a trader was 5 1/2 years.
Various online services such as Kelly Blue Book, TrueCar և Carvana will provide a shopping estimate based on your location և your car’s age, mileage և general condition և offer more customized estimates if you provide details : car identification number. Some even offer to buy your car directly.
If you are trading in one of your dealerships, be sure to negotiate your new purchase price before discussing the value of your trade, Consumer Reports recommends.
And when using a used car, it may need to be inspected by an independent mechanic to detect any potential problems. If the dealer refuses to do this for you, it might be best to shop elsewhere, Barry said.
The Federal Trade Commission offers additional advice on buying used cars on its website, as does the American Consumer Federation.
Here are some questions and answers about car purchases.
What are the average interest rates on car loans?
According to “Xperia”, the average interest rate on a new car loan at the end of 2020 was 4.3%. The average interest rates for used cars were higher – 8.4%. The average monthly loan for a new car, according to Edmunds, is $ 575, and for a used car loan – $ 432.
I want to keep the monthly payment for my car low. Does it make more sense to get a longer term loan?
It is best to choose the shortest loan term you can manage, according to Experian. The average loan term for a new car is approaching six years as buyers try to keep their monthly payments affordable. But longer means you will pay more interest over time. And the longer the loan term, the greater the risk that you may end up in the “underwater”. That is, as the car gets older and loses its value, it may cost less than you owe it. If for some reason you had to sell the car, you may not have the cash from the sale to repay the loan.
Is it always cheaper to buy a used car?
Almost always. But sometimes the price difference between a lightly used one-year car and a new version of the same car is not so great, according to a recent analysis by iSeeCars.com. In those cases, it makes sense to buy a new one, especially if you want to take advantage of the lower interest rates available when financing new cars, says Carl Brower, executive analyst at iSeeCars. The average price required for a lightly used Toyota Tacoma, for example, is only 4% less than for a new model, which is worth considering for the new version. In contrast, the used Hyundai Sonata is 36% less than the new model, making the used version attractive.