![]() ![]() Opinions expressed in this article are the author's alone, not those of a third-party entity, and have not been reviewed, approved, or otherwise endorsed. This article originally appeared on and may contain affiliate links for which Money receives compensation. Used Car Prices Are Down for the Fourth Straight Month - but Costs May Soon Rise Again Get useful tips, expert advice and cute animals in your inbox every week.Ħ0% of People Shopping for a New Car Are Worried About Affording It Still learning the basics of personal finance? Let us teach you the major money lessons you NEED to know. It could soon become even more difficult to afford a used car, as some experts are forecasting that higher loan rates and higher prices are coming. The used car market is getting especially competitive as people receive their tax refunds from the IRS. Why wait to file?įile your state and federal taxes with the help of a Tax Preparation Software by clicking above. Meanwhile, the average price of a used car price declined by 1.7% in February, falling to $26,068, according to Kelley Blue Book. These rates will likely rise even more after the Fed announced a 25 basis point interest rate hike Wednesday, according to Cox.Īs a result of higher loan rates, the average monthly payment for a used vehicle purchase increased slightly last month, rising from $546 in January to $551 in February, Edmunds reports. Edmunds says the average loan rate is 11.3%, up from 7.8% a year ago, while Cox reports that the average used loan rate is 14%. Used car buyers are in a nightmarish situation for getting loans. Those are the prices dealers pay at auction, and wholesale trends can indicate what’s next for retail prices Kelley Blue Book analysts say used car prices could be set to rise after new data showed that wholesale prices increased 1.8% in the first half of March. “Used-vehicle sales have been up significantly, causing inventory to fall quickly in recent weeks and leaving dealers with especially tight inventories for the tax refund and spring selling season,” Charlie Chesbrough, senior economist at Cox, said in the report. Given that used supply is low, the market looks competitive right now. With refunds coming in earlier than they did last year, tax season car shopping has gotten off to a quicker start, according to Cox Automotive, the parent company of Kelley Blue Book. As taxpayers get money back, some are using it to buy cars, depleting inventory at dealerships. In 2023, the IRS has processed more tax refunds in the early part of the season. Buyers might not be happy with the selection of used cars available for sale either. ![]()
0 Comments
Leave a Reply. |