Gas has always been cheap in the USA; it is something that allowed many citizens to drive large cars and SUV’s without breaking the bank. There are factors that have changed the environment. The recession and the problems of the economy were just two of them. Environmental pressures have resulted in more people questioning their personal carbon footprints and that means their gas consumption. Big engines are ‘gas guzzlers.’ The USA auto sales figures during the recession were depressed. Few models were able to show any growth; one exception was the Honda Civic which clearly bucked the trend because of its fuel economy.
While auto sales have recovered and the wholesale cost of oil has fallen dramatically environmental factors are still a consideration and in the coming months those people thinking about buying a new car may ask themselves a number of questions. Certainly the fact that interest rates remain low makes financing any purchase from real estate to cars or home improvements affordable for those in regular employment.
There is unlikely to be any return to the early days of the Century when there were few restrictions in obtaining credit. A car is not an investment; it is a necessity in most cases but there is no reason with the quality of today’s models to change cars as frequently as in the past. It makes the buying decision more important than it used to be. There is no need to hurry; it is better to make the correct choice rather than rush. There are quality used cars that may make a persuasive argument as well. Running costs should be factored into any decision; that is much more than the gas consumption. It includes insurance and service.
When it comes to finance those who have a good credit score are likely to get the best realistic loan offers. There is no likelihood of huge interest rises in the coming months because some of the world’s economies are still fairly fragile. There is a level of interdependency between national economies that means that no country is immune from international market conditions and interest rates reflect that in many cases.
Just as the buying decision is worth consideration it certainly makes sense to shop round for the best loans. There are auto manufacturers and dealers who are likely to have special offers of finance but they are not the only ones to talk to before making a decision. If a car loan in taken over a few years it is possible to save plenty of money over the period of the loan.
It is sometimes best to have finance in place, at least in principle before going to a dealer because you will be effectively talking as a cash buyer. A cash buyer is likely to be able to get a better price than someone who apparently needs help. If the dealer then wants to discuss arranging finance and has a better deal to offer than you have provisionally agreed you can still take up the offer and get the keen price you have negotiated.
Those who have a growing family may be looking for a saloon car. Such cars are not always gas efficient but they are certainly better than large SUVs. If your auto is simply to get yourself around or occasionally a passenger or two your choice a few years ago may have been the 4 x 4 or SUV. Even though finance is readily available at low rates gas consumption has become an issue. You may want to reduce your carbon footprint in which case why not go for something smaller?