The average price of new cars has skyrocketed, and some used cars aren’t much better. Why can’t you find any affordable cars anymore?
Over the past several years, a few things are to blame for the increased price of vehicles. Inflation is always a factor. We won’t see cars that cost only a few thousand dollars when new ever again, but that’s to be expected. Today’s vehicles have more technology, computerization, and features than ever before. These added items cause vehicles to be much more expensive than before.
COVID-19 turned the automotive world on its head
The onset of COVID-19 caused many automakers to slow or stop production. This meant cancelling supply orders and working to find solutions to the no-contact sales problem. Although most car dealers figured out how to sell cars during this time, the damage was done, and suppliers weren’t shipping necessary parts, especially semiconductor chips, to automakers. This turned the automotive world on its head, causing some used cars to cost more than their new counterparts. Thankfully, we’re beginning to see things level back out to a more normal situation, but that doesn’t mean car prices will ever come down.
CAFÉ standards create increased prices
As much as we want to spend less for a new or used vehicle, increased CAFÉ standards make it difficult. This acronym stands for Corporate Average Fuel Economy, which means an automaker needs to meet a specified average fuel mileage figure across all passenger vehicles. Commercial vehicles are exempt from this standard. These standards continue to become stricter each year, requiring hybrid, PHEV, and EV models to be part of the automotive mix. These alternative fuel vehicles are more expensive than traditional vehicles, causing affordable cars to disappear from existence.
Cash for Clunkers could help you
If you’re looking for a new or used vehicle and you want to save some money in the process, you might qualify for the Cash for Clunkers program. This is a government program that provides financial incentives when you trade in your old, less fuel-efficient vehicle for a more fuel-efficient model. This could be a great way to trade in that old clunker that’s taking up space in your driveway and add a little more to the deal, giving you a much-needed price break on your next ride.
What to look for in a used car
If you want to buy a used vehicle, get a great deal, and know that you’ve got a car that you can trust for several years, you’ll want to follow a few tips. There’s no getting around the high price of today’s vehicles, which means the affordable cars are gone, but you might be able to drive your next used car for several years.
Ask for maintenance records
Ask to see the vehicle’s maintenance history to see how well its been taken care of. When vehicles have regular oil changes, tire rotations, recall work and other care needs met, you can trust that it should last a long time. Regardless of where you buy your next vehicle or who it is from, you should obtain the service records from the dealership or seller.
Does the mileage match up
Most drivers travel 15,000 miles or less per year. If you’re looking at a used vehicle that seems to have too many miles on the odometer, there could be several reasons for this. With the increased number of delivery services available, some people use their vehicles to deliver food, groceries, and packages in their towns. This means a lot of extra city mileage added to a vehicle, making it one you might consider avoiding. Just because it seems like you’ve found one of the few remaining affordable cars available doesn’t mean it’s a good deal.
Aftermarket modifications
Sometimes, sellers think the aftermarket modifications they have made to a vehicle add value to that car. This typically isn’t the case. If the seller begins telling you about several changes they’ve made and quoting the prices for those changes, you can bet they have added those modifications to the price they want for the vehicle. These modifications don’t add value to the car and sometimes decrease the value because they might not be covered under the vehicle’s warranty. If the seller begins telling you about all the add-ons and their prices, it’s time to walk away.
You can find good deals on used cars but might not find any that you would call affordable cars. The days of cheap and reliable cars are basically over, but that doesn’t mean you won’t find the car that’s right for you.
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