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Buying a Car on a Budget Is More Difficult Now

Man with newly purchased car after recieving an interest-free loan

Buying a car on a budget is difficult and the challenge does not seem to be changing anytime soon. In fact, cars have gotten more expensive and often we hear “I paid too much for my car.” The pandemic and rising inflation have put more of a strain on this continuing issue. Automakers across the globe struggle to secure computer chips and other important car manufacturing materials.

In fact, Kelley Blue Book issued a report stating that the average used car now sells for 42% more than before the pandemic. Finding a need-based car compared to a want-based car is more of an issue now. According to NPR, car manufacturers are producing more want-based cars which generally means the highest-priced cars on the market—luxury vehicles, SUVs, and pick-ups. This is all adding to the stress of finding an affordable, reliable car on a budget. “Searching for a reasonably priced car is like looking for a needle in a haystack,” as stated in a recent MoneyWise article.

We live in an economy where it feels like anything can be shipped to you. There are even advertisements on the TV that we can now buy a car without going into a dealership. If this is the case, why is it such a struggle to find an affordable car? As noted before, the pandemic, inflation, and manufacturing issues have all led to this ongoing problem.

It is not the car dealerships that are struggling, according to a recent article in TIME magazine, “Car dealerships appear to be benefiting from the shortages.” Some dealerships are even adding extra fees that are not necessary and therefore causing even more financial stress for consumers. This has attracted the attention of the Federal Trade Commission so we may see a stop to this in the future.

If you are having trouble affording a used car purchase, please reach out to us. JFLA understands purchasing a car on a budget is a real crisis. If interested in a JFLA interest-free loan to purchase a used vehicle, please begin the process by completing a pre-loan application on the website.