Consider Inflation: Is Now a Good Time to Buy a New or Used Car?

Tips to Use When Shopping for New Cars for Sale in Houston

The past couple of years have been a bit of a rollercoaster ride for the automobile industry. When factoring in all the variables such as the pandemic, semiconductor chip shortages, overseas shipping delays, and an up-and-down economy, it all adds up to one very big problem – inflation.

According to the U.S. Bureau of Labor Statistics (BLS), inflation for new cars is up 10.1 percent year-over-year when comparing August 2022 to August 2021. For that same time period, the BLS reports that inflation on used cars and trucks is up 7.8 percent. This has made it especially difficult for those shopping for new cars for sale in Houston.

Vehicle Inflation and the CHIPS Act

For new and used vehicles, inflation is up due to price increases on the production level and the shortage of semiconductor chips. However, the Biden administration has made a commitment to resolve the semiconductor chip shortage with the executive order to implement the CHIPS and Science Act of 2022. The act is specifically designed to rebuild domestic supply chains, manufacturing, and the infrastructure that is required to produce essential semiconductor chips for new vehicles.

What does this mean? In addition to creating domestic jobs, the CHIPS Act should get the automobile industry back on track. By extension, this should cool down inflation on new and used automobiles, although it won’t happen overnight. Experts are saying it will be a very slow process before car prices return to “normal levels” – a term that’s open to interpretation and subject to change.

How to Shop for New Cars for Sale in Houston

With interest rates continually on the rise, it is not as prudent as many people assume to wait for a car. The Fed has been raising rates each week, making it the smart decision to buy now before interest rates go up. Furthermore, trade values for your current car have never been higher, making it a really good time to make an upgrade for many folks. There are definitely ways to shop for new cars for sale in Houston for consumers who are conscious of their budget.

For those who are in the market for a new car, focus on getting a low interest rate, a low monthly payment, a great warranty, and a high value on your trade-in. Regarding that last item, used cars are selling for much higher than normal, so you should be able to get a good deal on that front. It’s also worth noting that some dealerships will allow you to extend the terms of your loan to decrease your monthly payment, which many borrowers find helpful.

Another thing that savvy car buyers look into is the overall cost of ownership on a vehicle. Things like gas, maintenance, and the cost of repairs all add up. A list provided by Savvy (Sept. 2022) broke down the top 30 most expensive brands of cars to maintain over the first ten years of ownership. Brands like BMW and Mercedes-Benz were at the top of the list, costing owners $26,364 and $19,106 respectively. By comparison, Volkswagen ranked all the way down at the #22 spot, costing owners just $11,551 over the first ten years for basic maintenance and repairs.

However, VW is trying to get that number down even further with their Carefree Coverage warranty program. It’s a suite of coverages designed to keep your Volkswagen vehicle in tip-top shape. It includes:

• 2 yrs. Service – Scheduled Carefree Maintenance (2 years or 20,000 miles)
• 3 yrs. Help – Roadside Assistance (3 years or 36,000 miles)
• 4 yrs. Coverage – New Vehicle Limited Warranty (4 years or 50,000 miles)
• 5 yrs. Access – myVW Remote Access

When you visit the VW service center for maintenance or repairs, Carefree Coverage will appear in your records, making the process simple and easy. It comes included on all late model VW vehicles.

Ready to Shop for Used or New Cars for Sale in Houston? Visit VW Cypress!

If you’ve been looking for a Volkswagen dealership near you, then look no further then VW Cypress. As the leader of new cars for sale in Houston, we carry a wide variety of sedans, compacts, and SUVs made to suit any driving style, family dynamic, and most importantly – budget.

Not yet in the market for a new car? As the leading used car dealership near you in Houston, we pride ourselves on offering a variety of used cars and certified pre-owned vehicles that have undergone a 100+ point inspection. You can also check out other great deals on VW products and services in our specials section.

Visit VW Cypress today, conveniently located at 19550 Northwest Fwy in Houston. You can also call us at (281) 532-8824 or e-mail us directly using the contact form on our website.

Important notification to our customers: Volkswagen Cypress SALES operations will move into its new location at 11411 Farm to Market 1960 West in Houston, TX, after the holidays! SERVICE operations will also move to a new location after the holidays. Its new stand-alone building can be found at 10828 Steepletop Drive in Houston, TX, located just one minute away from the SALES.

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