What's Happening?
With new car prices averaging nearly $50,000, many buyers are turning to used cars to avoid large loans. However, the used car market is tighter than usual due to fewer new cars sold in recent years. Consumer Reports provides expert advice to help buyers find reliable and affordable used cars. Key recommendations include checking the vehicle's history, reliability ratings, and having an independent mechanic inspect the car. Popular models recommended include the 2019 Toyota Corolla and 2018 Mazda CX-5. The average interest rate on a used-car loan is around 12%, making it crucial for buyers to check their credit score, get pre-approved for a loan, and avoid long-term loans.
Why It's Important?
The high interest rates on used-car loans can significantly impact the overall cost of purchasing a vehicle. Buyers need to be strategic to find a good deal and avoid hidden costs such as reconditioning, licensing, or extended warranties. Consumer Reports emphasizes the importance of understanding the terms before signing and planning a budget carefully. This guidance is crucial for consumers looking to make informed decisions and avoid financial pitfalls in a competitive market.
What's Next?
As the used car market remains competitive, buyers are encouraged to shop around and negotiate terms to secure the best deal. Consumer Reports advises buyers to be vigilant about the fine print and to ask questions about any unclear charges. This proactive approach can help consumers save money and ensure they are making a sound investment in their vehicle purchase.
