- 1. Finances
- 2. Supply chain issues
- 3. Auto loan interest rates
- 4. Electric vs. gas vehicles
- 5. How a new car affects your car insurance costs
- What’s the bottom line?
Since the start of the coronavirus (COVID-19) pandemic, many potential consumers have faced challenges in their car buying quest. With auto dealerships forced to close their doors or operate with reduced hours, it’s been difficult for many people to find the perfect car. So, what about buying a car in 2023?
But things have begun to turn around, and more consumers feel comfortable heading back into the world and purchasing a car. If you’re planning on buying a car in 2023, here are five important issues worth considering before signing the dotted line.
1. Finances
Someone buying a car | Angus Mordant via Getty Images
According to Experian, “Buying a new car is a big decision that requires a thorough examination of your individual situation, as well as ongoing economic trends. In 2022, we faced uncertainty within the car market not seen in many years. And now, even as the world is finally starting to rebound from pandemic-related issues, other economic factors could affect consumers’ car-purchasing power.”
Buying a vehicle is a substantial financial decision. That’s why It’s important to ensure you’re stable enough in your current situation. You’ll also want to consider inflation and interest rates before committing. If you don’t feel like your situation is secure enough, it’s probably not the best time to purchase a car, truck, or SUV.
2. Supply chain issues
We know there have been shortages in the automotive industry for about two years. Unfortunately, this includes chip shortages. With how everything is trending, there’s a good chance that supply chain issues will continue.
3. Auto loan interest rates
Since the beginning of 2020, car shoppers have put off buying new vehicles due to increased prices and supply not meeting demand. Just this past year, rising inflation increased the cost of borrowing money to buy a vehicle. These high-interest rates aren’t going away soon.
So, what can you do? You can start taking steps to improve your credit score. That way, you will be in a better position to land an auto loan with terms you’re comfortable with.
4. Electric vs. gas vehicles
With rising gas prices, electric vehicles have gained popularity. We’ll likely continue to see this trend continue in 2023.
And depending on your driving needs, an electric vehicle may be a good investment. Now, there are more replacement parts, and the number of charging stations is also increasing.
Remember that purchasing an electric car is a greater one-time expense than buying a gas vehicle. But, looking at the bigger picture, buying an EV could end up saving you money.
5. How a new car affects your car insurance costs
Related
If you’re in the market for a new car, a change in your insurance premium is expected. The reason why? When insurance companies calculate your premium, different factors are considered.
For example, it’s more expensive to replace a new car than it is to replace an older car. New vehicles are also a higher priority for potential thieves – which can increase your premium.
What’s the bottom line?
Buying a new car should always be an exciting experience—but it can also be stressful if you don’t do your research beforehand. By taking some time upfront to consider factors before signing any paperwork at the dealership, you can ensure that you get what you want without encountering any unpleasant surprises afterward.
Keyword: 5 Potential Issues to Consider Before Buying a Car in 2023