Americans in a hurry to buy a car can be controlled by high interest rates and bad credit terms

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• Americans flock to car dealers The automatic tariffs of President Donald Trump lead to higher transportation costs. However, consumers can not be equipped with finances to prepare these large ticket purchases, prepare these large ticket purchases or reducing debts or other purchases in the lower part of debts and other purchases.

New car buyers who want to avoid auto tariffs can be an unexpected financial result as a result of long credit terms and high interest rates.

President Donald Trumps 25% automatic tariff In the end of March, introduced to the United States, causing anger of new car shopping, but as a result of these large ticket buyers can wait for new car buyers to receive a vehicle and take loans with higher interest rates.

Before Trump’s automatic tariffs threaten Growth prices for the increase in cars and insurancePandemic car prices were already highAbout $ 48,000 Edmunds for a car shopping site for a medium operating price. With interest rates above 7%, buy a car, a good change, Jessica Caldwell, Edmunds, Edmunds, explained Luck. 

To reduce steep prices, Americans extend the length of loans with about 20% of car loans in seven years, due to edmunders. It may be a result for consumers that hastily thoroughly landed themselves in a hurry to avoid a rush-recent price increase.

“People are in a hurry to get something right now, because there is a schedule to do with it,” said Caldwell. “A true risk for many people, perhaps they are not ready to buy or buy or buy a sudden decision, and they were able to sign for a sudden decision or a sudden seeming monthly payments.”

The inevitability of automatic prices raised

Car dealers saw a Whiff of activity As consumers find a new vehicle before bringing more wider, recipient cars. Hyundai The best April sales reported, 19% saw the annual growth of the year Nissan In the same way, the annual annual US sales in March increased by 10% in March. In March and April, a light truck and SUV saw more than 17 million sales rates, respectively, according to the Bureau of Economic Analysis information In the sale of seasonally adjusted vehicles. In the same period before, it was about 16 million in the same period.

According to Denver Metropolitan State University, the economy of the economy is based on this trend

“We almost guarantee to see the rise in the price in the future,” said Kulkarni Fortune. “And if you are ready to buy a car, you buy better today.”

Indeed, there are car prices remained steady According to the Bureau of Labor Statistics, the more years’ consumer price index, but still have 9000 $ is more expensive more than they are before the pandemic. There’s Trump relieved the effect By rolling back taxes in certain imported car parts of auto tariffs, consumers, Jason Miller’s information, Associate Professor’s Associate Professor, the results of my reserves in the Extensive Work College of Michigan State University. With a car dealer Profit margins are so thinThere is no choice to increase prices.

“There is no way, it also said that his edges were before the covenant, in the absolute conditions, the higher the costs of the tariffs and the recipient will gain a good share of the recipient Fortune.

If new car owners avoid the headache of tariffs, they are not free from financial risks. Less ideal loan terms can lead to a person who is more than the actual value or negative capital, it becomes difficult to trade it in line. The percentage of borrowers who owe more than negative capital shares or cars increased by 0.4% in March information From the very car, it offers growth in standard rates in the future.

The movement around the tariffs also puts the dealers in a difficult situation, Edmunds’ Caldwell said. With so many uncertainty, sellers do not want to receive trade-insevri in connection with how long tariffs will be. Due to tariff-related price increases, they can get cars at a high price, but they can only be relevant to not be relevant until they sell branded cars.

Financial trade

There are ripple effects on finance of one of the decision to make a large ticket purchase. To replace the impact of auto loans to the budget, consumers pinched pennies in other procurement, Kulkarni said. May seem like this for higher income Americans Getting out of holiday plans. For low-income families, this means libra in food or clothing shopping.

Consumers can be forced to trade longer. Recent car buyers have made a choice to pay a higher interest rate in a vehicle, instead of waiting for the ratios instead of re-financing these loans, said Miller said. But interest rates are likely survive. When they are small enough to refinance on more favorable terms, consumers are likely to have larger financial problems.

“(Federal Reserve) said it was incredibly well confident, or when these tariffs do not have inflation such as inflation or see something so slow to do something so much to do something,” he said. “Unfortunately, at this point, in general, it means we have entered a recession.”

In spite of these risks, there were the value of new cars, which resulted in the inevitably rising value of new cars, which occurred soon and in the coming months, would be among the crowd in the dealers.

“The motives to buy a car are very different from everything,” he said. “When people need a car, the car needs.”

This story was first displayed Fortune.com

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