What you need to know to get the best deal on a used car
ST. LOUIS PARK, Minn. – It's been two years since the last federal stimulus check, and only a few weeks since the federal reserve raised its benchmark interest rate.
Now, factor in auto manufacturers being open with all the chips they need, and we finally have supply to meet demand.
The new consumer price index is showing a modest 3% rise in prices for new cars and trucks across the country, but there is virtually no increase in Minnesota.
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Used car prices are down 5.6% since last summer in the U.S., and closer to 6% in Minnesota.
The new numbers reflect a new reality, but perception is also a key component of the auto economy and the American economy. So if you're in the market for a car and you're heading to a dealer soon, the experience is going to be somewhere in between, and you need to be prepared.
True bargains aren't back, but some incentives and rebates are for the first time since the pandemic.
"There's some loyalty programs, so like for instance an Alfa customer coming back off a lease or purchase can get extra money from the manufacturer to stick with that brand. There's money out there to be shared with the consumer," said Briggs Thompson, a manager at Luther Alfa Romero in St. Louis Park.
Thompson says new hybrids remain in high demand. For used cars, he says beware of prices that might seem too low, because the catch might be big money to buy new parts.
"Tires are anywhere from $600 to $1,000. The brakes are a safety issue, so more than anything the brakes are protecting you, your family," he said.
Asking for a full inspection, no matter the mileage, will always protect your wallet.
Despite the good news with car prices, there is bad news on the car insurance front – those prices are still going up.
