Your finance company's underwriting department should be quite busy during the next few days if the newest research from WalletHub is any indication.
Despite business headlines chronicling the travails of the stock market and international trade clashes, WalletHub projected that 77.5 million new- and used-vehicle sales will be completed during Labor Day weekend with many consumers taking advantage of enhanced financing opportunities.
Furthermore, WalletHub chief executive officer Odysseas Papadimitriou stated in the site’s latest auto financing report that more than half of Americans feel more financially secure buying a car this year than last year.
“Yes, it is a good time to buy a car right now. Car loan rates are still very low, relative to historical averages. The end of the quarter typically features favorable pricing as dealers try to clear inventory and hit quotas. And car sellers need to make a big splash over Labor Day weekend because it has become such a car-buying holiday,” Papadimitriou said in the report.
“Record-breaking auto sales in recent years should also work in buyers’ favor. Sellers will have to price vehicles aggressively to keep pace with unprecedented comps,” Papadimitriou continued.
Papadimitriou also touched on whether vehicle hoppers should wait for more Federal Reserve interest rate cuts. Policymakers will take their next action at the end of September.
“Car shoppers may benefit from lower rates in the wake of future Fed rate cuts, but they could also be hurt by an escalation in the trade war. So waiting could wind up costing you money,” Papadimitriou said.
“Since no one can predict the future, the best approach is not to try to game the market. Rather, do your homework on finding a vehicle that is a good value and will fit in your budget. From a personal finance standpoint, it’s always best to focus on minimizing debt and getting all the miles you can out of your current car,” Papadimitriou went on to say.