Are you thinking of buying a new car? If so, it helps to be informed about what’s going on in the market.
Now that the economy is improving, auto sales are picking up. So does that mean you should by a new or used car? What can you expect from a trade-in? And how much is it going to cost you to drive your dream ride?
Today, I’ll be sharing predictions and current facts from industry experts.
Used Car Prices are Dropping – Fast!
Back in 2011, used car prices were at a 16-year high due to a difficult recession. Today, that has changed quite a bit. Used car prices have been dropping since August, and that trend is expected to continue over the next few years.
This is due to a number of reasons:
- Loans with longer terms (which make lower monthly payments) are more common
- Manufacturer incentives
- Increase in leased vehicles
For both new and used car shoppers, it’s important to note that because of the dropping prices, trade-ins may not get you the amount you’re looking for.
Not to worry, though – Aspire is here for all your auto loan needs.
MPG on the Rise
The combined miles per gallon average is currently at 24.1 – a number that has been increasing over the years. This is due in part to the mandate from Congress that all cars and light trucks must have a combined MPG of 35 by 2020.
Because of that, new cars will see an increasing amount of advanced technologies. I have to admit most of these new features are beyond me since I’m not a car enthusiast, but here goes:
- Cylinder deactivation – This allows some cylinders to rest when power demand is low, for example, when you’re steadily cruising along. Shutting down more cylinders allows the engine to breathe more and this can save up to 25% of fuel (depending on your driving habits).
- Turbocharging – This captures exhaust and forces it to spin a turbine that will bring clean air into the engine, thus reducing the power needed from the engine to do that.
Other upgrades to look out for include a direct fuel injection and a homogenous charge compression ignition.
…and a Rise in Electric or Hybrid Cars?
Of course, another way to tackle the MPG problem is to invest more in electric/hybrid vehicles. Navigant Research predicts this market will grow from 2.7 million vehicle sales in 2014 to 6.4 million in 2023.
Whatever becomes most popular, I hope the cars get safer – 1 out of every 5 vehicles on roads was recalled in 2014!
Aspire Auto Loans
Visit our Auto Loans page for more information about financing with Aspire. We offer:
- Up to 100% financing on new and used vehicles
- Variable terms on new and used auto loans
- Up to 10% discount on auto insurance through Liberty Mutual
- Discounted Guaranteed Asset Protection (GAP) and Mechanical Breakdown Protection (MBP)
You can reach our Loan Experts at 732-388-0477.