Updated: Aug 25
By: Reagan Williams
(Source: Pexels / Antoni Shkraba)
If you are looking for a car before the end of the year, be prepared for a challenge. Since December 1981, the U.S. has not experienced a drastic increase in inflation at the rate of 8.6%. Americans across the country are experiencing the rise in gas prices, oil, electricity, and the soaring prices of food. Food costs have skyrocketed by 10.1% with the largest increases in meats, poultry, fish, and eggs. According to Moody’s Analytics, a financial firm, a third of the U.S. inflation can be attributed to the war in Ukraine and the sanctions that have followed. The firm highlights the root of the problem to the higher energy prices of gasoline causing a ripple effect on the economy.
Moreover, if you are looking to purchase a car at the moment, there are economic factors that are working against you. If you are on a budget, be prepared for the 16.9 percent rise this past year to pay for a used car. Unfortunately, the U.S. is still recovering from the fall of the microchip shortage last year. Two years since the microchip shortage began, some auto dealerships around the country are seeing some light at the end of the tunnel. Consumers are still ordering cars and dealerships are delivering them. While people within the industry feel that things could take up to a year to return to normal before the onset of COVID-19.
(Source: Pexels / Kelly M. Lacy)
As you are shopping for a used car, it is important to realize that used car increases are not created, “equal.” For example, New York had the greatest used car price spike in May 2022 in comparison to 2021 at 25.7 percent. This adds up to $7,068 on average more out of your pocket. If you live in Wyoming, the price increases to $3,387. However, a notable trend found in today’s market is out of the 10 states with the highest price increase, seven were Eastern coastal states.
In the past, consumers were advised to wait to purchase a vehicle, but experts are saying that new geopolitical factors are going to perpetuate the rising costs of used car prices. According to the iSeeCars website, there are 12 steps that a person can take to determine if they can afford a vehicle that meets their budget. One key thing is consumers need to forecast and think about what their future might look like. Consumers should be able to determine how much they can pay and will they be able to make their car payments for the duration of the payment term. Therefore, it’s essential for consumers to do their research when it comes to shopping for cars and auto loans. Once you're ready to begin shopping, iSeeCars is a great site to begin your search locally with over 59 filters to choose from and review the biggest hikes in price by state depending on the year, make, and model. Now, you can begin your used car search with optimal prices, while having access to comprehensive reporting on a vehicle you might be interested in. All in all, keep in mind the tips and tools to find the best used car prices and vehicle for you.
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