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Posts Tagged ‘car buying’

Most Americans Can No Longer Afford a New Vehicle

Study finds cars most affordable in Washington, D.C.

by on Jun.28, 2017

Many buyers are finding themselves priced out of the new vehicle market these days.

If you find the price of that new vehicle you’ve been looking at just a little out of reach, well, you’re not alone. When June numbers come out in a few days, the typical price for a new car, truck or crossover is expected to approach $34,000, and only in a handful of American cities is that within reach of the median household income, according to a new study by Bankrate.com.

In fact, the study suggests that the typical new vehicle is within reach of the typical household in just one U.S. city: Washington, D.C., with San Francisco right on the cusp. In places like Miami and Detroit, however, the average household can afford to pay barely half what the average new vehicle is priced at these days.

Our Price is Right!

Affordability has become an increasingly serious concern in recent years, as the price of the typical vehicle has rapidly risen to record levels. And it’s expected to become even more of an issue now that most analysts believe the U.S. automotive market is on the decline after three consecutive years of record sales.

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Millennial Car Buyers Favor Practical, Rather Than Luxury

Used cars dominate their buying decisions.

by on Jan.31, 2017

Millennial buyers are largely focused on affordable, practical used vehicles.

Young Americans continue to put off learning to drive and then buying a car, according to a raft of recent surveys, though some of the research indicates Millennials are simply delaying, rather than abandoning, the traditionally American goal of getting wheels.

Once they do, they seem to be opting for practicality, according to one of those new studies, research by marketing platform Crowdtap suggesting that budget-minded Millennials are putting a low priority on luxury and status vehicles.

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Not surprisingly, the Crowdtap study also finds that these Gen-Y buyers are more likely than American auto buyers, on the whole, to purchase previously-owned vehicles, rather than new. About 86% of those included in the survey went for something used.

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Getting a Good Deal Depends Upon When You Buy

Black Friday is the best time to get the best deal on a used car.

by on May.23, 2016

The end of the year holidays aren't just a great time to get a new vehicle, there are good deals available on used cars then too.

Is there anything more elusive than a “good deal” when it comes to buying a car, especially a used car? There are many variables that go into getting an automotive “unicorn,” and when you buy a vehicle is one of those key factors.

In analyzing more than 40 million used-car sales from 2013 to 2015, iSeeCars.com, a deal-ranking site for used vehicles, compared specific times of the year, such as days of the month and week, to determine whether customers can score more or fewer deals than average. (A deal was defined as a savings of 5% or more.) Based on those findings, the site listed the 10 best times to land a deal.

Your Auto Insider!

They also figured out the worst time to buy a used car. If you’re in the market now, you might want to wait until the weather cools off, according to what they found, before you start prowling a dealer’s used car selection. (more…)

Study Finds Big Gender Gap in Car Choices

Men search for performance, women for practicality, affordability.

by on Dec.30, 2015

Women are having a bigger impact on the auto industry than ever, but have very different interests than men.

Gone are the days when men dominated the new car buying process. Women now buy – or at least influence – more than half of the vehicles sold in the U.S., according to various studies.

But there’s still a big gender gap when it comes to the vehicles men and women choose. More precisely, when they go online – as most shoppers do to research their eventual choice — women appear to be practical and direct about what they’re looking for. Men? They’re as likely as not to start fantasizing about the cars they’d like to get, whether or not those are practical choices fitting the budget.

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Men are more interest in sportier, powerful cars and trucks than woman, according to a study by data service iSeeCars.com. Women, on the whole, are looking for vehicles that are affordable.

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Growing Economy Means Buyers Getting Pricier Rides

New car buyers are purchasing more expensive vehicles.

by on Jun.18, 2015

New vehicle sales are going well and buyers are purchasing more expensive cars in 2015.

New car sales continue to benefit from positive economic trends, says a new report from Edmunds.com. While sales are not growing as rapidly as they did in 2013 and 2014, sales remain very healthy.

The U.S. light vehicle market in May had one of its best-selling months since the Great Recession. May is generally a strong month, with consumers flush with cash from tax returns, and upcoming summer vacation trips spurring strong demand, and this May was no exception, said Charles Chesbrough, the chief economist for IHS Automotive. The IHS Automotive sales forecast remains unchanged at 16.9 million units, while others are predicting sales in excess of 17 million units.

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Sales are not only on the rise compared with last year, but also buyers are looking for pricier vehicles. Car shoppers’ revived interest in more expensive vehicles, which is led in some measure by the ongoing interest trucks and SUVs, is unlikely to end any time soon, according to the firm’s latest U.S. market analysis. Positive economic trends such as lower unemployment, higher confidence in the economy, and lower gas prices are encouraging shoppers to seek out bigger and more expensive vehicles, the analysis found. (more…)

Vast Majority of Car Shoppers Worldwide Now Ready to Buy Cars Entirely Online

Nearly half would be happy with a “virtual test drive.”

by on Apr.17, 2015

Chinese car buyers are the most interested in purchasing vehicles entirely online, finds new study.

Eight out of 10 shoppers in key markets around the world now use the Internet to help them choose what vehicle to purchase, and the vast majority would carry that a step forward, according to a new study, completing the car buying process entirely online.

Nearly half, in fact, wouldn’t even bother going to a showroom for a test drive, telling researchers they’d be happy with a “virtual test drive.”

Your Trusted Online Source!

“The impact of the digital customer is becoming pervasive, disrupting the traditional car-buying experience and the competitive landscape,” said Christina Raab, global managing director for Digital Consumer Services in Accenture’s Automotive practice. “This is clearly supported by the fact that many would consider conducting the entire car-buying process online.”

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Millennials’ Purchasing Power Reshaping Auto Industry

Gen-Y auto purchasing power reaches $135 billion.

by on Jan.29, 2015

Millennials are starting to buy more new cars, after all, and have increased purchasing power.

It’s often said that Millennials have a very different view of the automobile – and a new study suggests they are gaining the purchasing power to reshape the auto industry into their own image.

Americans born between 1980 and the late 1990s are expected to account for about 25% of the new vehicle market this year. That means they will generate sales of 4.24 million vehicles, according to data tracking service TrueCar — the equivalent of $135 billion in purchasing power.

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Talking About The New Generation!

“Improving economic conditions are shifting the rhetoric around Millennials and car buying,” said TrueCar President John Krafcik. “They are the largest growing cohort in the market and saying they don’t like cars simply isn’t true anymore. We know having a car means the same thing to Millennials that it does to other generations: independence and identity.”

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Millennials Move from Cars to SUVs – Just Like Their Parents

Compact cars lose their luster as Gen Y ages.

by on Aug.19, 2014

The Ford Explorer Sport is the perfect vehicle for conquering the concrete jungle.

Ford's Explorer is one of its more popular models with Gen Y as Millennials turn away from compact cars.

Conventional wisdom would suggest that Millennials would rather sit at home playing videogames and texting, and if they do buy a car, they’re likely to opt for something small, preferably with a battery.

As is so often the case, however, the prevailing sentiment is wrong, as several new studies reveal. Not only are Millennials buying cars in ever-larger numbers, but they’re opting for roomy crossovers and sport-utility vehicles, much like their parents.

Crossing Generations!

One likely explanation, according to Chris Travell, a vice president at Maritz Research, is that they want vehicles that can carry more of their stuff.

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Is it Better to Buy or Lease? Or is There Another Option?

Loans, leases – and lease assumptions – give shoppers options.

by on Aug.08, 2014

Car shoppers have a variety of options when it comes time to close a deal.

New car sales are stronger than they have been since the start of the Great Recession, and likely to keep climbing, according to industry analysts. Demand is expected to be especially strong in the coming weeks, with August traditionally one of the hottest months of the year at dealer showrooms.

The good news for consumers is that despite surging demand, interest rates remain at near-recession lows. That’s led many buyers to move up-market by stretching out loans to five, six and even seven years. But if you’re in the market for a new car, truck or crossover, should you be buying or leasing? Are there, in fact, other even more affordable options?

Auto Insight!

A new study underscores the financial advantages of leasing over buying, but it also points to a potential alternative, a small but growing number of motorists opting to take over existing leases, something equivalent to buying a “nearly new” vehicle.

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Auto Buyers Loading Up on Loans as Monthly Payments Hit Record

Buyers also extending loans to record levels.

by on Jun.02, 2014

While sales continue to rebound, consumers are borrowing more to get into a new vehicle.

U.S. auto buyers are paying more than ever and stretching out their loans to record lengths in order to make their monthly payments, according to a new study.

Consumers are also turning to leases in record levels to help cut their costs, reveals the latest State of the Automotive Finance Market, from the data tracking firm Experian Automotive.

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“Consumers are really relying on financing as the price of new vehicles continues to move higher,” said Melinda Zabritski, Experian’s senior director of automotive credit. “As the cost of purchasing a new vehicle continues to rise, consumers clearly are stretching the loan term to help lower monthly payments, keeping them at a manageable level.”

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