Is It A Good Time To Buy A Car For You?

While some car lovers add every new model to their collection, others just crush over their particular favorites. And if you are one of those, one can easily guess how desperately you want that new Tesla right now. However, one needs to consider the financial side too. You need to ask yourselves first if it’s a good time to buy a new car. Now, if you are wondering the same and can’t decide, then read on to get things a little simplified for you.

What is the present state of the car market?

It’s no secret that the car industry is in a state of chaos. The pandemic had a notable impact on manufacturing, causing a delay in the launch and production of vehicles. Then there was the chip shortage, which just added to the existing delay.

Prices began to climb up, as production struggled with restricted new car supplies. Dealerships were left with minimal inventory. Thus, for those getting a car was a real need then, they had no choice but to pay whatever premium was asked. Otherwise, the dealership could have just passed it on to the next potential customer.

Situational impacts on the auto market

In the end, the scenario had a variety of effects on the used car market.

• First, households that would normally purchase & upgrade to a new car had to bear with their current car for a little longer. In the hope that car prices would drop, they restrained themselves from buying new cars till purchasing became an actual need. This limits the amount of inventory available in the used market and impacts prices for used cars.

• Second, for a certain segment, new cars are expensive, and those people tend to buy used ones instead. Again, this demand results in a hike in used vehicle prices.

The financial aspect

Before you buy a new car, take a look at your financial aspect of the equation. The addition of a monthly payment for a new car might disbalance your budget.

Vehicle payments are typically several hundred dollars a month & some deals/discounts are always on offer. Therefore, it is better to think about it carefully. While an average monthly payment on a secondhand car is more than $500, for a new car, it can hike up above $600. These figures can have a significant impact on your financial situation.

Moreover, you have to also consider that you might end up paying more than the vehicle’s actual worth. After all, time and situation play a significant role in deciding something’s value. It relies more or less on the market condition.

Should you buy a car now?

Logically, it won’t be as great of an idea to buy a new car now IF not really necessary. If you’re in the market for a new or used vehicle, the prices are extremely high. Even getting lower interest rates isn’t enough to make up for the high basic cost. Moreover, if a loan isn’t included in it, it’s just a lot of cash straight out of your savings.

Thus, if you already have a vehicle that works pretty fine and doesn’t have to be replaced, then just wait it out. Waiting for the right time and for the prices to lower, is the only financially correct thing you could do.