Used car interest rates pumping brakes on car buying enthusiasm [Video]

With average interest rates tipping scales at 13% for used cars and 12% for new ones, dealerships have more inventory but not necessarily lower prices.

In the market for a new car? Sticker shock might curb your enthusiasm.

Car lots have more inventory than they did during the pandemic, but car loans are pumping the brakes on quick sales.

“Since 2020, the car buying market has been a roller coaster. Low inventory in 2020 and 2021 made prices sky rocket, then another blow to consumers came when the Federal Reserve, in an effort to bring down inflation, started to raise interest rates,” explained financial literacy author Ja’Net Adams.

Adams said today, consumers must thoroughly research the market and rates before stepping foot on a dealership lot.

Used car loans are, ironically, more expensive than new car loans. Adams again blamed the rising interest rates, which the Fed needed to cool …