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

What's Happening?

Consumer Reports has released guidance for individuals considering purchasing used cars, as the cost of new vehicles remains high, averaging nearly $50,000. The used car market has tightened due to a decrease in new car sales, with about two million fewer new cars sold in 2021 compared to 2019. This scarcity has driven up prices in the used car market, making strategic purchasing essential. Consumer Reports suggests checking vehicle history, reliability ratings, and having an independent mechanic inspect the car before purchase. They also advise on financial considerations, such as checking credit scores and avoiding long-term loans, as the average interest rate on used-car loans is around 12%.

Why It's Important?

The shift towards used cars is significant as it reflects broader economic trends and consumer behavior in response to high new car prices. This trend impacts the automotive industry, influencing production and sales strategies. Consumers stand to benefit from informed purchasing decisions, potentially saving money and avoiding financial pitfalls associated with high-interest loans and hidden costs. The advice from Consumer Reports aims to empower buyers to make smarter choices, which could lead to increased consumer confidence and stability in the used car market.

What's Next?

As the market continues to evolve, consumers may see further fluctuations in used car prices and availability. Buyers are encouraged to remain vigilant and informed, utilizing resources like Consumer Reports to navigate the complexities of the market. The automotive industry may respond by adjusting production strategies to meet changing consumer demands, potentially leading to innovations in vehicle offerings and financing options.