With low interest rates and disruptions in the economy, many people thought this would be a great year to buy a new car. It turns out that like so many other things in 2020, it’s complicated. While we expected a drop in used car prices due to the Hertz bankruptcy and expected ensuing flood of used cars into the market, low interest rates have brought a tremendous number of buyers into the used car market. As a result, it’s gotten difficult to find a good deal on a used car. The article below from USA Today talks about a hot seller’s market in used cars and what about that about:
On the new car side, the issue is inventory. Because of Covid-related delays, dealerships are having a hard time getting cars. See more on that below:
In summary, while 2020 once seemed like a year that would present car buying opportunities that could make you move a new car purchase up in your financial plan, that does not appear to be the case any longer. It makes sense to just stay on course.
One last item on car buying. I’ve always enjoyed listening to this episode of the “This American Life” podcast. https://www.Thisamericanlife.org/513/129-cars It provides an interesting view of the car buying process as the host goes behind the scenes in the dealership for an entire month. It is eye-opening, and it gives you some good tips on how the process works and where to find deals. It’s authentic, so be prepared for some foul language.
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Any opinions are those of Wheeler Financial LLC and not necessarily those of RJFS or Raymond James. The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. There is no assurance any of the trends mentioned will continue or forecasts will occur. The information has been obtained from sources considered to be reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete.