No matter where you go, it's impossible to ignore. Prices are going up across the board and the dreaded "i-word" (inflation) is making headlines on financial news outlets. We're all feeling the pain at the gas pump and at the grocery store too. If you're shopping for an automobile, you're probably noticing that sticker prices - even those on used cars - have gone up. Universal Used Car Superstore is here to give you some valuable information on what may be causing these trends and how you can best go about navigating the current economy so you can come out on top! Let's first take a look at the "why".
Why Are Car Prices Rising?
Many factors have contributed to the current economic pressures, but there's no question that the COVID-19 pandemic has created ripple effects that are being felt far and wide and will continue to influence prices for the forseeable future. When everything shut down in the Spring of 2020, automobile production came to a stand-still. Suppliers of auto microchips had to steer their production efforts towards home-based products like game consoles and computers to survive the shutdown. Auto sales plummeted at the height of the pandemic, but not as severe as expected, so demand returned earlier than originally projected, leaving microchip suppliers unprepared to produce the goods needed to get new cars off the assembly lines. Some manufacturers, like Ford's massive F-150 plant, had to completely cease production leaving inventory levels low while demand increased. Economics 101 tells us that when demand is higher than supply, prices inevitably rise.
OK, so that explains the increase in new car prices. How does that affect used car prices? When new car shoppers are unable to find the vehicles they're looking for in a dealer's new inventory, they will either wait for more product to arrive, or more frequently, look to used car inventory to meet their transportation needs. This trend combined with the fact that more people began holding on to their currently owned vehicles to ride out the pandemic, resulted in a major tightening of used cars available for sale, leading to an upward pressure upon prices.
What Can I Do About Higher Car Prices?
As the economic trend evolves, there are several steps you can take to intelligently weather the storm and put yourself in a position to get the most for your car shopping dollar. Let's look at how you can go about this.
- Determine Your Driving Needs
Challenging times call for honest assessments and figuring out what you need as opposed to what you want when it comes to your next auto purchase is critical. Your typical number of passengers, daily mileage, and frequency of longer trips, all play a part in deciding on whether you require a larger vehicle with more power or a more fuel-efficient compact car.
- Set a Budget
It's wise to take into account your current financial situation as well as your employment status to determine a reasonable amount that you can spend on a car that can be comfortably absorbed by your monthly budget. A great way to determine this is to utilize the helpful Payment Calculator and Budget Calculator Tools on our website. These valuable aids help you estimate the monthly payment of a vehicle you're interested in based on it's listed price and loan term and can help you determine a budget amount from that payment.
- Get Pre-Approved For Auto Credit
Universal Used Car Superstore has an easy and secure process for applying for a used car loan online. We'll work with you to get you approved for a great rate on a used car loan and seamlessly process your financing along with your purchase transaction for a fast and smooth experience.
- Don't Hesitate
The Fed is actively adjusting interest rates in an effort to stem inflation and economists expect more increases to come. If you're considering a used car purchase in the near future, act now rather than later to get your best used car loan interest rate.
- Shop Universal Used Car Superstore
The best move you can make to get your great used car deal in the current economy is to shop with us! Our used car inventory is fully-stocked with recent lease returns and trade-ins from our massive Hyundai and Nissan stores, giving you a great selection to choose from at prices that are lower than our competitions'. We feature a select number of used cars priced under $10k so budget-conscious customers can quickly find our lowest priced vehicles we currently have. You can even bid on our huge collection of auction vehicles that are specially priced and can save you thousands off current market prices. You can also have the peace-of-mind that comes from our comprehensive Universal Certified Pre-owned Programs that ensure that you're getting a quality vehicle that we stand behind.
We appreciate your business and we're here to do everything we can to help you navigate these challenging economic times by offering you the best used car deals with the easiest financing terms and the friendliest customer service of any car dealer in the Orlando area.
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