July Fourth car shopping comes with some deals but less of a selection. Here's what to expect investinyou (In partnership with acorns.)
Among consumers planning to buy over the Fourth of July weekend, 69% plan to purchase a new car, according to a Cars.com survey done in June. Another 23% said they'd buy a used car and 8% were undecided.In a business known for its personal interaction, the pandemic forced many dealerships to"We've seen 50% of dealers and 70% of inventory on Cars.com presented as digital sales with a home delivery and virtual appointment," Mays said.
And while many dealerships have re-opened their showrooms as local regulations have permitted, it's worth calling ahead if you want to go there because you may need to schedule an appointment.As for deals, it will depend on the manufacturer and model. Nissan, for instance, is offering $6,000 off certain versions of its Murano, a crossover SUV with a starting price of $31,530. The 2020 Ram 1500, a full-size truck with an asking price of $32,145, comes with up to $6,300 off on certain models.
Some of those loans stretch for as much as seven years, which could put buyers in a tricky situation down the road if they end up wanting to sell or trade in the car and owe more than it's worth — i.e., having so-called negative equity. "At 0% financing, a six- or seven-year loan could make sense for a responsible buyer," Caldwell said. "But for many Americans, relying on longer loan terms to justify their bigger vehicle purchases could put them at greater risk for negative equity in the future."
The share of new sales with a trade-in involving negative equity was 44% in April, up from below 35% a year earlier, Edmunds research shows. The average amount of negative equity was $5,571.
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