{"id":352,"date":"2022-11-02T17:43:31","date_gmt":"2022-11-02T17:43:31","guid":{"rendered":"https:\/\/www.autobuyersmarket.com\/news\/?p=352"},"modified":"2025-05-05T10:24:30","modified_gmt":"2025-05-05T10:24:30","slug":"falling-used-car-prices-offset-by-steadily-rising-costs-of-vehicle-loan-interest-rates","status":"publish","type":"post","link":"https:\/\/www.autobuyersmarket.com\/news\/2022\/11\/02\/falling-used-car-prices-offset-by-steadily-rising-costs-of-vehicle-loan-interest-rates\/","title":{"rendered":"Falling Used Car Prices Offset by Steadily Rising Costs of Vehicle Loan Interest Rates"},"content":{"rendered":"\n
\"For
For now, it may be worth putting a few extra dollars into maintaining your current ride. File photo: GBJSTOCK, Shutter Stock, licensed.<\/figcaption><\/figure>\n\n\n\n

WEST PALM BEACH, FL – After months of skyrocketing used car prices spurred on by a shortage of new vehicles on the market due to COVID-19-related supply chain issues, prices are finally starting to show signs of falling in news that will be a relief to many prospective buyers; however, those lowering prices are unfortunately being offset\u00a0by rising loan interest rates<\/a>, effectively near canceling them out when it comes to the bottom line.<\/p>\n\n\n\n

Prices for used cars reached their zenith in the spring, and have since dropped from that high by approximately 10 percent since that time; while a significant drop, used car prices nonetheless remain about 55 percent higher than they were prior to the pandemic.<\/p>\n\n\n\n

However, prices of vehicles typically decrease in the final months of any given year to reflect annual depreciation, which should contribute to continued cost reduction, and experts are anticipating an additional 10 percent drop in 2023 due to the country\u2019s current slow economy.<\/p>\n\n\n\n

While this is good news for buyers who are paying cash upfront for their used cars, those who intend to finance their purchase will still be facing an uphill battle. Vehicle loan interest rates are continuing to climb as the Federal Reserve keeps rising interest rate in an effort to stimulate the economy and avoid a full-on national recession.<\/p>\n\n\n\n

Currently, used automobile loans have a whopping interest rate of 9.2 percent, with an average term of 70 months, whereas new vehicle loan rates are at 5.9 percent for the same duration. Some lenders are offering zero-interest incentives for limited periods of time, but for no longer than 36 to 48 months.<\/p>\n\n\n\n

Experts believe that the used car market will continue to experience affordability issues for some time to come due to an overall lack of inventory, driven by both demand and owners holding onto their own vehicles longer than they used to due to financial issues caused by inflation. Likewise, rental companies are also holding onto their fleets longer than before as well, contributing to shortages of used cars in the marketplace.<\/p>\n\n\n\n

However, domestic car production is nearly back to the level it was prior to the pandemic, so eventually experts are anticipating the market to return to stability and affordability at some point in the future. But for now, it may be worth putting a few extra dollars into maintaining your current ride.<\/p>\n","protected":false},"excerpt":{"rendered":"

WEST PALM BEACH, FL – After months of skyrocketing used car prices spurred on by a shortage of new vehicles on the market due to COVID-19-related supply chain issues, prices are finally starting to show signs of falling in news that will be a relief to many prospective buyers; however, those lowering prices are unfortunately […]<\/p>\n","protected":false},"author":4,"featured_media":353,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[3],"tags":[],"class_list":["post-352","post","type-post","status-publish","format-standard","has-post-thumbnail","category-market-updates","entry"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\n\t\t\n