Thinking about buying a car? Here's what auto experts say you need to know

People spend a lot of money on their cars and trucks. In fact, about 16% of the average American's total budget goes to transportation, including vehicle costs and fuel. That makes it the second-biggest expenditure after housing but before incidentals like food, education, and saving for retirement.

The scale of the expense can make shopping for a vehicle stressful – especially for younger, first-time buyers who tend to have less-established credit histories and lower savings.

And today's market makes it even worse.

According to Kelley Blue Book, the average cost of a new vehicle (including cars, crossovers, vans, pickup trucks and SUVs) exceeded $47,000 at the end of 2021 – up more than 25% in just two years. Average used vehicle prices saw an even steeper rise, going up 42% from under $20,000 at the end of 2019 to over $28,000 two years later. These price increases exceed overall inflation over the same period. They're due to a production slowdown caused by the pandemic, coupled with pent-up consumer demand and a global microchip shortage.

So, what's the best way to buy a first vehicle in today's marketplace?

Keywaylock
15/11/2022
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