Rising demand no reason to put off car purchase
Posted on Monday, September 21, 2015 at 4:05:30 PM
Many people are reentering the auto market after having spent years on the sidelines following the recession, and as a result of the increase in demand, average sale prices for vehicles are also on their way up.
The increasing cost of a car is in part due to the fact that, with gasoline prices as low as they have been, people are purchasing pickups and SUVs at rates not seen in a long time. However, the demand in this area in particular doesn't mean that people should avoid larger vehicles, as long as they can afford them.
"My opinion on this would be only if they can't afford what they want to buy," explained Christine Dikdan, AVP of auto lending services at Home Loan Investment Bank. "A detailed budget should help determine this. Most likely this will not be your last car purchase. If you can afford your first choice, and that is what you would like to drive - why not?"
Another reason why car prices are going up is because people need to replace their vehicles after spending so long waiting while money was tight. Demand for vehicles isn't slowing down anytime soon as more people decide the time has come to replace their cars. For this reason, people shouldn't put off purchasing a vehicle in hopes that the auto market will cool off, because who knows when that will happen? Instead, it is important to simply be smart about seeking auto financing and buying a car.
"Eventually vehicles become too frustrating and costly to repair and an upgrade is necessary," Dikdan said. "Also, vehicles get in accidents daily and must be replaced. Bottom line ... life goes on and the circle starts again. The end of a month and especially the end of the year is usually a good time to purchase. Car dealerships have goals and they are usually more flexible with pricing at month-end and year-end. Life is expensive."