Did you know that the Consumer Price Index rose 9.1% between June 2021 and June 2022? The last time America experienced a drastic increase in the Consumer Price Index was in 1981.
Some of the categories where inflation hit the highest were energy, new vehicles, and transportation. If you have searched the car market in the past year, purchasing new cars might seem too intimidating.
The vehicle industry has made many car models unaffordable, but is it expected to change? Luckily, we have a must-read article you won’t want to miss out on.
In our complete guide, we will review the new and used car market and how to find a trusted dealership today. Keep reading on for more information!
Purchasing New Cars
The car industry news has been at the top of many headlines in the past two years. New car prices in September hovered around $45,000. Compared to 2021, the amount financed for buying a car is nearly $3,000 more, and many monthly payments are well over $700.
To make matters even more complex, interest rates and car inflation has made it more expensive to finance. New car interest rates are approximately 7%, and used cars are nearly 11%.
Will New Car Prices Drop?
One of the biggest hurdles for car buyers is whether they should purchase a used or new car from a trusted dealership. Fortunately, the mass shortages of new cars have eased.
Experts predict that there will be enough new cars available for purchase. Unfortunately, higher interest rates will make it challenging to lower your monthly payments. If the price tag is still a bit too high for you, you might want to consider a used car.
Leasing vs. Financing
If you want a new car with lower monthly payments, you may consider leasing. Some of the benefits of leasing include the following:
- Reduced upfront costs
- Reduced monthly payment plans
- No resale
When shopping for a leasing plan, ensure you look for a guaranteed purchase price. Leasing a car through a trusted dealership will also provide gap protection policies.
Used Car Update
Used car prices have also fluctuated this year. In August, the average price of a used car was $28,657. While it had dropped around 1% compared to the previous quarter, the prices are still up around 9.6% from last year.
Car experts also found that used car prices are approximately 48% higher than in 2019 and still have a ways to go before dropping into affordable price ranges. Like new cars, higher inflation rates can create additional challenges regarding affordability.
Start the Car Buying Process
While car inflation has steadily risen over the past two years, you can still find the car of your dreams. Currently, there are more options for purchasing new cars and finding a model you’ve been keeping an eye on during the past year.
As shortages ease and new cars enter the market, the experts at Ed Morse have you covered. Whether you are shopping for a new or used car, we have several Chryslers, Dodges, Jeeps, and Rams to choose from.
Are you ready to get started? Check out our new car market today and begin the financing process.
