During the pandemic, many people are forced to make a difficult choice – change an old car for a new one, use a loan, or wait a few years until the crisis passes.
Incomes have declined, while prices in the automotive market are increasing. New cars became unavailable to the majority of customers, while used vehicles of the most advantageous configurations were out of stock. This is leading more and more buyers to think about auto financing.
A loan is an opportunity to own a car as quickly as possible before prices go up. In addition, a used car, which is not as expensive as a new one, can benefit its owner – its cost will practically not change for several years of ownership. Banks offer advantageous automobile financing conditions throughout the past year. But the situation will change.
For the second month in a row, the auto credit market shrank in quantity and volume due to the shortage of new cars, rising prices and falling income for Americans. Auto market analysts fear that banks will raise auto loan rates in the near future.
If in 2019 – early 2020 the total cost of a loan rate for new cars has not changed, then in 2021 the rates have fallen for two consecutive quarters. Banks have lowered their rates to attract more customers. However, the downside potential has been exhausted and rate growth this year was quite predictable.
The problem of buying cars is particularly acute for owners of cars over five years old, and these vehicles can lose value considerably over the course of a few years. Considering the current situation, it is essential to consider all the pros and cons and assess the risks. Those who have bought a car before will benefit in the future, but buying a used vehicle today can still be a worthwhile investment.
Despite the rise in rates, most banks have become quite flexible and are now actively developing credit programs. Sometimes they offer more attractive rates for used cars and can provide loans for almost any need of their customers. According to MyAutoloan.com, an auto loan rate for a used car is on average 6.61% for an excellent credit rating. Banks such as Chase and Bank of America also offer historically low lending rates.
Most Indianapolis dealers work with state and local banks to help customers solve their financial problems hassle-free. “We always strive to get the best possible loan rate for our customers and take care of the paperwork,” said Victor Figlin, general manager of Indy Auto Man, an Indianapolis used car dealership.
Putting all the facts together, we can sum up that this fall is a great time to buy a used car. It’s a rare balance between a cheap purchase with an affordable loan rate on one side and a good inventory of used cars available to choose from the other.
Company Name: Indy Auto Man
Contact: Victor Figlin
E-mail: Send an email
Address:4031 S, East Street
State: EN 46227
Country: United States