buying Used car buyers turn to even older vehicles to save a buck amid rising prices
Some used vehicles now costing more than their original sticker price
Some used vehicles now costing more than their original sticker price originally appeared on Autoblog on Tue, 22 Jun 2021 17:39:00 EDT. Please see our terms for use of feeds.
In yet another sign the remains in an absurd state, new data from Lending Tree released Monday showed car buyers are going to new lengths to nab a set of wheels. Not only are buyers financing larger loan amounts for , they're ending up in older cars compared to past years.
According to the data, the average age of a used vehicle Americans purchased in the first two quarters of 2020 hovered around 5.8 years old. Year-over-year in 2021, the age jumped to 7 years flat on average. In some metro areas, the average age of vehicles on which shoppers kicked the tires more than doubled. New Orleans, for example, ranked at the top with potential borrowers shopping 16-year-old cars on average this year. More often than not, older cars cost less, and it's clear Americans are looking to turn back the clock to land an affordable car. The next data point likely explains why.
How Much Does it Cost to Charge an Electric Car?
When shoppers are considering the purchase or lease of an electric vehicle (EV), one of the first questions they ask is, "how much does it cost to charge?" While it's easy to answer that question for a gas-powered car by looking at its fuel economy and your gas station receipt, it gets a bit more complicated for an electric car. If you're charging from a home charging station, the cost of charging an electric vehicle is based on the vehicle'sIf you're charging from a home charging station, the cost of charging an electric vehicle is based on the vehicle's energy efficiency and the cost of electricity, which can vary greatly depending on where you're charging.
The average amount on finance inquiries for a two-year-old vehicle jumped a whopping $5,176. Last year, those shopping financing for a two-year-old car were looking at an $18,298 loan, but today, they're looking to borrow $23,475 -- 28% more. It's a two-pronged story. As the semiconductor chip shortage continues to hit automakers hard, used cars become more attractive to the companies. GM Financial, for example, won't let lessees any longer. Why? They want that car back so a GM dealer can sell it themselves while new car inventories remain low. This makes used cars far more valuable to those selling them.
At the same time, car shoppers hope to land a better deal with a used car since depreciation hits new cars hard. However, with used car values increasing, the deals are few and far between. It explains inquiries for much older vehicles with far cheaper prices.
'Mad Max: Fury Road' Vehicles Blasting Their Way to Auction
The cars from the post-apocalyptic film classic can be yours. The 2015 action movie Mad Max: Fury Road featured some of the most spectacular vehicle stunts ever filmed, and now you can buy some of the cars that were put through their paces in the desert to get those shots.A total of 13 vehicles from the set will be up for sale, including the famous War Rig tanker truck and plenty of convoy vehicles.Bidders will have just two days, September 25 and 26, to make their secret bids, and they won't know what other people are offering in this tender.
Many automakers were hopeful the second half of the year would bring a reprieve to the chip shortage, but so far, it doesn't appear that way. The same advice still stands: it's not the best time to buy a car, but if you need one, shopping around for the best deal can literally pay off.
Video: What will cars be like in 25 years? (CNET)
Car Buyers Should Be Wary When Taking Out Loans: Consumer Reports .
The consumer watchdog reports that the average car payment has hit nearly $600 per month, and shoppers must be careful not to be victimized by unfair interest rates. There's not a ton of easily available data on the auto loan landscape in the U.S., so Consumer Reports collected information on almost 858,000 car loans. Turns out, it's ugly out there.For example, over the past decade, the average monthly payment for a new car climbed almost 25 percent, to almost $600 today. The total amount of auto loan debt out there today in the U.S. is around $1.4 trillion.