Some people may be in need of a new car, and deciding whether you should buy it in 2022 or 2023, if possible, is important.
The data that would determine whether you should wait or not are the interest rates for car loans. According to News Channel 10, the U.S. News and World Report said that that average interest rate for a new car loan in November is 9.31%. That rate is with excellent credit, which most people do not have. People with poor credit are looking at 22%, and it gets even higher for used cars.
Interest rate hikes are expected to continue next year. This can be assumed after the Federal Reserve Governor stated that they still have a way to go while trying to help inflation rates.
According to finance expert Jarrett Felton, now isn’t the best time to buy a new car if yours is still running. He explained that just one year ago he was able to purchase his new car with a 1.9% interest rate. That is nowhere to be found today, and if you must make a big purchase, plan it out well. Heading into a recession and depleting your savings account isn’t the way to go.
Some people can’t wait to buy a new car, and there are some things that can help soften that burden. First, keep in mind that some of the best deals can be found between December 26 and 31. This is so dealerships can get rid of their inventory before the new year. New car prices have jumped by 30% and used car prices by 50% since the pandemic began. In 2023 that number is expected to drop by 2.5% to 5% for new car prices. Used cars are expected to drop by between 10% and 20%.
FingerLakes1.com is the region’s leading all-digital news publication. The company was founded in 1998 and has been keeping residents informed for more than two decades. Have a lead? Send it to [email protected].