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Recession watch: Holiday car shopping statistics and predictions Advertiser Disclosure Advertiser Disclosure We are an independent, advertising-supported comparison service. Our mission is to help you make better financial decisions by offering you interactive financial calculators and tools, publishing original and objective content. We also allow users to conduct research and compare data for free and help you make informed financial decisions. Bankrate has partnerships with issuers such as, but not limited to American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Earn money The products that appear on this site are from companies that compensate us. This compensation may impact how and when products are listed on the site, such as the order in which they may appear in the listing categories and other categories, unless prohibited by law. This applies to our mortgage or home equity, and also other products for home loans. But this compensation does affect the information we publish, or the reviews you see on this site. We do not include the vast array of companies or financial offerings that could be accessible to you.
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3 minutes read. Published November 28th, 2022.
Writen by Rebecca Betterton Written by Auto Loans Reporter
Rebecca Betterton is the auto loans reporter for Bankrate. She specializes in assisting readers with the ins and outs of securely borrowing money to purchase the car they want.
The edit was done by Rhys Subitch Edited by Auto loans editor
Rhys has been writing and editing for Bankrate since the end of 2021. They are passionate about helping readers gain the confidence to manage their finances by providing concise, well-researched and well-organized information that breaks down otherwise complex topics into manageable bites.
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As the holiday season approaches, the most important thing to be thinking about is the possibility of recession expected to arrive over the next few years. However, not all ignorance is bliss. Growing inflation and the likely recession will impact all facets that affect the economic. This includes buying a car as new vehicles are expected to be available coming out in October, as per Kelley Blue Book. If you’re like the that are worried about this recession, being patient could save you money. Instead of giving a car with a big bow this holiday season- to yourself or someone else -think about where prices are and how you can best prepare for future . Statistics on recession preparedness Unfortunately, the holiday season is known for its extravagant spending — often times, it results in people spending more than they can afford. A recent study found that 27 percent of shoppers admit to spending more than they can afford to pay for gifts for the holidays. If they stay in line with their spending habits this year so far it is possible that issues will arise. In March 2022 even with inflation at 8.5 percent, people spent more than two years prior according to a McKinsey study. 51 % of people think inflation will rise in the next year than it is today. Car loan balances were at a high as of November 2022. The monthly average payment for new cars during the 2nd quarter 2022 period was $667. The average monthly payment for used vehicles in the second quarter 2022 stood at $515. New vehicle sales dropped from more than 16.9 million in 2005 to during the recession. 41 percent of Americans do not feel prepared for a recession if it occurred before 2023’s end. 38.22 percent of consumers purchased new cars during the 2nd quarter in 2022.
Holiday shopping statistics Many holiday shoppers fall into the trap of seeking out the perfect present. This can mean spending over budget and even straining finances. Some shoppers this year though have a different perspective and 3 out of 5 planning to spend less, according to . This is a good choice as the consumer price index stood at 298.1 in November’s mid-point, an increase from 274.1 one year ago. Whatever the reason behind spending more money this winter, now is an ideal moment to consider how overspending can impact every aspect of your financial health. 40% of shoppers say that inflation is likely to change how they spend their money this year. There’s nearly 30 percent better used car deals on average in January. 84 percent of shoppers will use strategies to save money during the holiday season. The winter months bring an increase in the number of people who purchase luxury vehicles and sports automobiles. 27 percent of holiday shoppers admit to their budget feeling stressed during the holiday season. 59 % of shoppers plan to spend less on gifts this holiday season.
How do you prepare for a downturn in 2023? In 2008, drivers faced a similar fate The predicted recession of 2023 has many aspects that the drivers of 13 years ago didn’t have to take into consideration. Primarily, the ongoing supply chain issues which continue to increase the cost of vehicles. Due to stock limitations and the lack of inventory, you are unlikely to take advantage of many of the specials that drivers of 2008 were given. However, there are some ways to prepare when it comes to your personal finances and car purchases. Use these suggestions to save money during the recession. 1. Make sure you only buy what you can afford The primary way to ensure that you do not get into a difficult financial situation when purchasing a car is to only buy what you can manage to afford. Consider this number while also factoring in that will build throughout the duration of ownership, such as trips to the mechanic or fueling up with gas. 2. Start building your emergency fund. Experts suggest that you cover three to six months ‘ worth of costs. However, pennies can accumulate, so it is smart to start saving as early as possible. Better yet, think about making your emergency fund the form of a — that you make interest in. 3. While buying an electric vehicle can have an upfront price but they’ll cost you less for the duration of your vehicle’s ownership. A reduced number of trips to the pump can add up to thousands saved, so consider the option if an electric vehicle will fit into your budget and your lifestyle. 4. Be cautious about a long-term loan Although it may seem appealing, it comes with certain risks. Signing up for an extension loan can mean your monthly cost is cheaper however, this doesn’t mean you will spend less altogether In fact contrary. A longer-term loan stretches out the amount you must pay over a longer period, meaning there’s more time for interest to accrue. 5. You can apply for loan preapproval While not all lenders provide the option of applying for loan , it is one of the most effective ways to understand your contribution to the cost of the vehicle’s ownership prior to. Loan preapproval simply means you’ll be able to set the monthly costs you anticipate prior to signing on the contract. By doing this you can be sure that the vehicle you’re thinking about buying will easily be within your budget. 6. Refinance your vehicle if you find that your loan exceeds limits on your finances, you may prefer to refinance your current car to cut down on your monthly expenses. This is particularly the case if your credit score has improved since you received your loan or if you first signed off with the dealer.
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Written by Auto Loans Reporter
Rebecca Betterton is the auto loans reporter for Bankrate. She has a specialization in helping readers with the ins and outs of securely taking out loans to purchase the car they want.
The edit was done by Rhys Subitch Edited by Auto loans editor
Rhys has been editing and writing for Bankrate from late 2021. They are dedicated to helping readers gain confidence to take control of their finances with clear, well-researched information that breaks down otherwise complicated topics into bite-sized pieces.
Auto loans editor
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