What It's Like Buying A Car In 2022
Updated: Nov 30, 2022
DISCLAIMER: NUMBERS LISTED BELOW ARE SUBJECT TO CHANGE OVER TIME
The Ford F-Series is ranked as the most popular automobile as of October, 2022, according to caranddriver.com. Ford has sold over 460,000 units of the pickup truck despite a 13% decline. The American manufacturer has also come out with an electric version of the truck to combat the hyped Tesla Cyber Truck.
When it comes to the gasoline version of the Ford F-Series, the price tag will run you up at least $35,580 without tax included. With that price tag the average American would not be able to buy the truck in-full based on the average net-income for the American person in 2022. The biggest factor in purchasing a new car/truck is having good credit as it would decrease the chance of needing a cosigner.
Before purchasing the car, the bank will promptly look into any history of repossessions or bankruptcy as those are key factors into a credit score. Most likely your credit score will be affected by the check, nevertheless the score stays confidential between you and the bank.
The average American puts down around $7,000 as a down payment/part of the finance charge for a $35,000 vehicle. The estimated sales tax would stand around 5%. That rate would make the minimum monthly payment of $630/m (60-months) If a loan is taken out. The total interest would be at $8,079 at a 9.89 interest percentage being owed to the creditor. Consumer credit will most likely be used due to the debt that you will be in.
The loan payments would be determined mainly depending on if it is closed-end credit or open-end credit. Closed-end credit is a loan or type of credit where the funds are dispersed in full when the loan closes and must be paid back, including interest and finance. Open-end credit is a pre-approved loan between a financial institution and borrower that can be used repeatedly up to a certain limit. Closed-end credit is the type that is used mainly for car loans as open-end credit is mainly in the form of credit cards. You can use a credit card to help pay off the loan, but you would still have to pay off the credit card in the future to avoid a debt build up.
An auto loan's interest rate is the cost you pay each year to borrow money expressed as a percentage. The interest rate does not include fees charged for the loan. The Annual Percentage Rate (APR) is the cost you pay each year to borrow money, including fees, expressed as a percentage.
Overall buying a car new in 2022 may not be the best idea due to the increasing prices and the daily deal with inflation.
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