Buying a new car is supposed to be a fun, rewarding experience that comes with zero inhibitions.
That’s what it’s supposed to be. But at the moment, many Australians are finding themselves thinking twice about buying a new car, turning it into more of a chore than an exciting new chapter in life.
So, what’s causing all this new-car anxiety? Is it the rising interest rates? The global car shortage? The fact that used cars are holding their value? Or a combination of all of these things? Here, we enlist the help of Carbroker.com.au’s finance experts and get to the core of it.
Interest rates are rising
One of the key reasons why many Aussies are thinking twice before buying a new car is the fact that interest rates are on the way up. When buying a new car in this climate, the greatest concern is the interest rate on the car loan itself. If interest rates on car loans triple in the next few months, we’ll see far fewer new (and used) car sales in Australia.
Plus, there are other implications of rising interest rates
Interest rate increases tend to cause a bit of worry for pretty much everybody. Mortgage payers are less concerned about investing in a new car and more concerned about funnelling cash into their mortgage. Renters are less concerned with buying a new car and more concerned with paying the rent. Business owners are less concerned with buying a new car and more concerned with keeping their business afloat. So, you see – interest rate hikes affect everybody to varying degrees.
Used cars are holding their value
Another reason to think twice before buying new is the fact that buying used has never been so attractive. Used cars are holding their value (or even increasing in value) a lot more than they have in the past, partially thanks to the global shortage in new car manufacturing after the pandemic. So, if you’re looking at upgrading, you should definitely consider used as an option with less risk.
When buying a new car is inevitable
If you want the peace of mind that comes with buying a new car, and you’ve always been a new car buyer, there are still a couple of things you should do before heading to the car yard. The most important thing? Getting in touch with Carbroker.com.au.
What you can do to counter rising interest rates when buying a new or used car
Interest rates are rising, causing many car seekers to panic. But that’s why you should contact the folks at Carbroker.com.au. Carbroker’s finance team can score you a great loan on both new and used cars. Their financial experts use a large database of financiers to drive down your interest rate and get you the best car loan for your personal needs. Don’t hesitate to call the team at Carbroker.com.au and earn massive savings on your next car loan.