Car prices edge higher in October
Posted on Monday, November 19, 2012 at 4:25:50 PM
The average price of cars increased significantly during the month of October. As countless Americans struggle to find their financial footing in the wake of the recession and look for affordable auto options, this could result in additional used car sales in the near future.
"This affected potential buyers in several ways," said Daniel A. Murphy from Home Loan Investment Bank. "Some potential buyers had to downgrade the vehicle they wanted to purchase for a lesser vehicle. This could mean selecting an older model year and/or higher mileage than originally desired to be able to afford the vehicle/ loan. This could also mean downgrading to a lesser model of the same vehicle (not getting the one with all the bells and whistles) or downgrading entirely and going with an entry level vehicle by the desired manufacturer( i.e.: Vehicle wanted Toyota Avalon; vehicle purchased Toyota Corolla). Other buyers also looked into new car options. Rates are low and the bottom line for most buyers is payment. If a buyer is paying the same amount monthly for inflated priced used vehicle and can purchase a new one at the same payment … bingo … we have a winner!"
Although a used car can be less expensive than a new vehicle, consumers may still need used car financing to complete the transaction. Purchasing a vehicle is one of the largest investments some people ever make, and an auto loan can make the prospect much more affordable.