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For buyers looking to capitalize on the downward trend in car prices, the situation remains complicated. Although vehicle prices are finally decreasing, the prevailing interest rates hover between 8% to 10%. This means that while the price you pay may be lower, the cost of financing is significantly higher. As most buyers tend to finance their car purchases, achieving affordable monthly payments becomes increasingly elusive without a substantial down payment.
The prospect of interest rate cuts in the near future seems dim, with Federal Reserve members resistant to altering rates amidst rising inflation. The intricate interplay between car affordability and interest rates could push consumers to reconsider whether now is the right time to buy.