Consumer Reports Advises on Buying Used Cars Amid High New Car Prices

What's Happening?

With the average price of new cars nearing $50,000, many consumers are turning to the used car market to avoid large loans. However, the used car market is currently tight due to a decrease in new car sales since 2019, leading to higher prices. Consumer Reports offers guidance to help buyers find reliable and affordable used cars. Key recommendations include checking the vehicle's history, reliability ratings, and having a mechanic inspect the car. Popular models like the 2019 Toyota Corolla and 2018 Mazda CX-5 are highlighted as good options. Financing is a critical consideration, with current used car loan interest rates averaging around 12%. Buyers are advised to check their credit scores, get pre-approved for loans, and avoid long-term financing to manage costs effectively.

Why It's Important?

The shift towards used cars reflects broader economic pressures on consumers, as high new car prices and interest rates make purchasing new vehicles less feasible. This trend impacts the automotive industry, influencing production and sales strategies. Consumers who navigate the used car market successfully can save money, but those who do not may face financial strain due to high interest rates and potential hidden costs. The advice from Consumer Reports aims to empower buyers to make informed decisions, potentially stabilizing the market by encouraging strategic purchasing behaviors.

What's Next?

As the market adjusts, consumers may continue to seek used vehicles, prompting dealerships to adapt their inventories and financing options. The automotive industry might respond by increasing production of new cars to balance supply and demand. Financial institutions could also adjust loan offerings to remain competitive. Buyers are encouraged to remain vigilant about market changes and continue seeking expert advice to navigate the evolving landscape.