If you’ve already done a bit of research on the car market these days, you would know that the price of cars has gone up. This is because consumers are on the lookout for new cars, and the cost of an average new car has gone up to more than $42k – and this was back in June of this year. There are many reasons for the higher price nowadays, and one of them is a shortage of semiconductors, with another being car manufacturers’ inability to meet higher demands. Another reason for the higher prices is that lenders are offering lower rates of interest, which has caused many consumers to flock to dealerships to get the best deals. But if you are determined to buy a car in 2021 or 2022, here’s what you need to know to save money.
- Consider buying used
Used car models are traditionally lower in price than new cars, which hasn’t changed even though car prices have gone up for new cars. A used car also allows you to save more on insurance, and there are now lots of deals available for used cars, including the ones from used car Utah firms such as The Young Automotive Group. Since many consumers have purchased new cars, they have chosen to sell their vehicles on the used car market – and this is the perfect time to take advantage of great models of used vehicles that are still in prime condition.
- Think about being flexible with your vehicle choice
On a related note, you may also want to think about being flexible with your vehicle choice. If you aim to save as much money as possible, you can opt for lower-priced vehicles like Toyotas or Hondas. It’s also worth noting that German models, RAM trucks, and Buicks are increasing in supply. One segment that is recovering pretty quickly with regards to supply is nearly-new trucks, but along with this, crossovers, sedans, and coupes are recovering well, too. Once these kinds of vehicles are replenished, they could lower prices for them in the next few months or years. If you choose to be flexible with your vehicle choice, you could very well take advantage of potentially higher savings – and you can also avoid being on a waiting list.
- Make full use of your great credit rating
Before you even begin looking at different cars in auto dealerships, you may want to prepare your finances first. Try not to depend on your chosen dealership to provide you with a loan because it’s possible to get a lower interest rate and better terms for a loan if you apply from your local bank or credit union.
Make it a point to have a reasonably good score and rating along with a good history of credit so you can get better terms when it comes to your loan, and you can check your rating and make use of a service that can monitor your credit so you can see how well you fare.
Here’s another tip: if you’re doing a car search online and aren’t set on a particular make and model, refine your search for the oldest car listings (i.e., cars that have been listed the longest).