Anyone who’s trying to buy a car can tell you that the market is volatile right now. Both new cars and used cars are more expensive, due to supply chain issues in 2020 and 2021. New cars are barely keeping up with demand, and used cars are a commodity. More and more car owners are delaying on buying until the market cools down.
But what if you need to buy? Here are a few tips to help you drive away into the sunset in your new ride!
Shop around
Keep an open mind on what you want. Make sure to get multiple price quotes from different dealerships and manufacturers, and don’t be upset if you must pay near the Manufacturers Suggested Retail Price of the car. Experts say that paying close to the MSRP is just the way it goes right now.
Try to buy Used
Experts say that new cars are becoming a luxury product. While used car sales have recently fetched higher price tags than what they are selling new, the premiums have been steadily decreasing as of late. With used car prices depreciating, that’s a sign that the market is returning to normal.
Demand may increase as the holiday season approaches, so be vigilant and try to buy as soon as possible.
Expect Interest Rate Sticker Shock
Forecasts are showing that the interest rates on all cars, new or used, will be increasing drastically between Thanksgiving and the New Year. So, if you’re looking to buy, now is the time! Don’t wait until those prices get higher. While trade-in values for vehicles have started to go down, it will take time for that to translate into lower sticker prices on used cars.
Drive your current car for a little while longer
Driving your current vehicle may sound like a less attractive option and can be impossible if your vehicle is totaled or is broken beyond repair. However, most fixes to cars are cheaper than even buying a used one. If your car doesn’t have issues, driving it for a little while longer while shopping around can help you keep a mode of transportation as you buy a replacement, and most of all, can save you time and money.
Get preapproved for an auto loan
No matter who you bank with, getting an auto loan is the best bet with the current market. Getting an auto loan with ALLIANCE gives you an ally in the car buying process. With competitive interest rates and flexible terms, we can provide you with a customized loan that fits into your budget. You can get pre-qualified with ALLIANCE to help you become a more informed buyer. We offer an array of products to protect your budget in case an unexpected event happens. We can also take a look at existing auto loans that you already have to see if there is any benefit to refinancing them.
