Nashville, Tennessee (WTVF) — If you’re looking to buy a new car, borrowing money can be quite expensive as interest rates have risen again.
Many drivers keep their cars longer.
Christian Ibarra said it’s too expensive to buy a new car right now and everyone is dealing with inflation.
“The prices are just crazy. I have friends in the industry who have seen a huge increase in new and used vehicles,” says Ibarra.
Tom Seyfried, who works for Genesis Auto Brokers in Cool Springs, buys cars at auction for his clients.
He said borrowers were hit hard after the Fed started raising rates.
“But the current 9% isn’t even the worst,” says Seyfried. “If your credit is really bad and you’re trying to rebuild, 11-15% is fine, and it can be even higher for bad lenders.”
He said paying cash or being able to withdraw some cash would go a long way.
“And rebuilding credit and increasing credit scores would certainly help raise rates,” Seyfried said. “And I hope interest rates will come down soon.”
Tom said some people are still finding interest rates below 5%, but it all depends on the bank. On the bright side, you can always refinance later.
Tom said that car prices are starting to come down a bit because fewer people are buying them.
“There are fewer buyers, but inventory is still pretty low. People are holding trade-ins. is affecting.”
For now, some drivers are waiting to see what happens next for the economy.
“I need to keep my car. I can’t afford one right now,” said Ibarra.
It’s also useful if you want to broaden your horizons instead of looking for one specific vehicle.
obtain NewsChannel 5 Nowanytime, anywhere, anytime for free.