For the past couple years, buying a new or used car has been anightmare for most people.
Inventory shortages, supply-chain issues, and low trade-in values meant inflated prices and limited options for buyers.
New-vehicle transaction prices are expected to decline moderately," Cox analysts said in thereport.
The huge markups that became the norm the past few years should ease up.
Even lopping a few thousand off the MSRP is a win for buyers these days.
And although MSRPs likely won’t return to pre-pandemic levels quite yet, any reductions will help.
According to data fromExperian, the average term for loans is nearly six years.
Still, here are some financing options that can help soften the blow these days.
Consider buying used or waiting.
Pre-owned cars dont face the same supply shortages and have depreciated substantially already.
Or, if possible, try waiting out the shortages and price spikes entirely until supply rebounds.
Make a large down payment.
Putting 20% or more down reduces the amount you have to finance, lowering the interest charges.
Plus, it helps guard against being underwater on the loan.
Get the shortest term possible.
Opt for a three- to four-year loan if you could manage the higher payments.
This prevents you from getting stuck paying interest on a deflating asset for close to a decade.
Shop around for lower rates.
Check rates at credit unions and local banks and negotiate hard with dealers to get the lowest possible APR.
Even small differences can save thousands over the life of the loan.
