Sean Larson decided he didn’t need his 2019 Subaru Crosstrek anymore, but he had 16 months left on his lease, so the Seattle resident thought he was stuck.
He wasn’t.
Many people with leases, such as Larson, are cashing in or turning in their cars early with no penalty. That’s because their vehicles are suddenly worth a lot more than carmakers and dealers expected when they had customers sign up for leases in 2018 or 2019.
The shift in favor of leaseholders has come about because of the COVID-19 pandemic, which pushed up prices for new and used vehicles and…
By Philip Reed | NerdWallet
The same thing that happened with toilet paper last year — shortages and panic Buying — is now happening with cars.
“In my 28 years in the business, I’ve never seen anything like this,” says Oren Weintraub, president of Authority Auto, a concierge car-buying service in the Los Angeles area. Microchip shortages, pent-up demand and a used Car market that “is on fire” are driving up prices and fueling a Buying frenzy, he says.
Used cars will be pricey for a while, as shortages of new cars today mean fewer used ones down the road.…
SAN RAFAEL, CA – JUNE 09: Used cars are displayed on a sales lot on June 9, 2011 in San Rafael, … [+] California. As the economy continues to falter and Japan recovers from the earthquake and tsunami, demand and prices of used cars have risen.
Getty Images
Car shopping comes with sticker shock these days, with new Car prices up 5% year-over-year, and used Car prices up 27%, according to data from Edmunds.
But the Car’s price isn’t the only thing that impacts its affordability: if you plan on borrowing, the interest rate and terms on your Car Loan…
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Buying Car Insurance is a pain. Finding and comparing similar policies is often puzzling—especially if you’re not even sure what coverage types you need or how policies are different.
Enlisting the assistance of a Car Insurance broker can make the process easier, potentially cut your Insurance costs and save you time.
Brokers sell coverage from Insurance companies. In some cases they can sell policies from several companies, and in other cases they are exclusive…
Red-hot demand for used cars is turning the auto-lending world upside down.
Prices are so high that some lenders are coming out ahead on defaulted Auto debt. And far fewer borrowers are underwater on their Car loans, meaning they don’t owe more than the Car is worth when they trade it in. It is a tricky time to buy a Car, but a pretty good time to owe money on one.
It is a silver lining of the surge in used-car prices. Americans are shopping for cars at near-record numbers, but a computer-chip shortage has starved dealers of inventory. The…
If you’re nearing the end of your lease, it might make sense in the current market to purchase the vehicle from your Leasing company. Most contracts include a provision to buy the vehicle at a precalculated price set at the beginning of the lease. In normal times, it’s usually not such a good deal, but with new and used cars in short supply and prices surging, the buyout price might represent big savings and actual equity in the vehicle, if you turned around and sold it to a third party.
“There was no way for the folks that drew up…
Times are tough, but there’s no reason to lose hope. By following these key strategies, you can proactively eliminate some of the roadblocks you will face along the way, easing the search and purchase process.
Get prequalified. This is good advice during the best of times, but as especially now, says Jon Salzberg, director of Credit Karma, an organization that helps Car buyers get a Credit score and keep track of their personal Auto financing. Getting prequalified gives the buyer a leg up in a negotiating process that is currently skewed in the seller’s favor. Since you’re likely to be…
What’s a decent Credit score to buy a Car? Depends what you’re willing to pay
This may come as a surprise, but there is actually no minimum Credit score to buy a Car. Don’t get too excited, though.
Just because you can buy a Car with no Credit doesn’t mean you should.
The lower your score, the less favorable your Loan terms will be. And in many cases, you’ll end up paying significantly more in interest.
So that raises the question: What is a good Credit score when it comes to Buying a Car?
It turns out there’s no one-size-fits-all…
