Before you knew it, December was upon us. 2022 has gone by rather quickly and has been an interesting year. The economy has slowed down and high fuel cost and rising interest rates have two major factors.
The Federal Reserve has been raising interest rates over the last several months. Just this week Federal Reserve Chairman Jerome Powell confirmed Wednesday that smaller interest rate increases are likely ahead and could start in December.
What does that mean for the close on 2022 and 2023? It can mean that 2023 will be more challenging that 2022. It also may drive more sales, because people may want to make a decision before rates get higher.
You are correct in saying that rates are higher than they were for the last 3 years, but remember this: rates have fluctuated over the last 40 years. The prime rate has been as high as 13% in 1984 and as low as 3.25% in 2008 and again in 2022. If you study the charts you will see that 8% is not really a bad interest rate when you look at the last 40 years as a guide. There are finance companies that do have more aggressive rates right now and they are looking for buyers with great credit. This could be an opportunity for the right buyer.
When you come in and get a vehicle you should understand a few basic things about auto loans. Auto loans are simple interest loans. That means that you can pay them off at any time and you would only pay interest for the time you borrow the money. That means that you pay the exact same amount of interest and principle on each payment. They have no pre-payment penalties. If you payoff a loan there are no additional charges. If you trade in your car or refinance your loan, you will not incur additional fees.
We are here to help guide you though this process and pair you up with the lender that best fits with your situation. We know the lenders and the good news is that they need to loan money and people are still getting approved for great loans everyday and we would be happy to assist any customer find a great loan on a car. Sometimes, we take care of the financing for you and you can make payment directly to us.
If you have any questions about credit and auto financing please call and we will do out best to help you out.