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Recession watch: Holiday car shopping statistics and predictions Advertiser Disclosure Advertiser Disclosure We are an independent, advertising-supported comparison service. Our mission is to help you make better financial decisions by offering you interactive financial calculators and tools that provide objective and original content, by enabling users to conduct research and compare data for free and help you make financial decisions with confidence. Bankrate has agreements with issuers such as, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Earn Money The deals that are displayed on this site are from companies that compensate us. This compensation can affect the way and when products are featured on the site, such as, for example, the sequence in which they be listed within the categories of listing and other categories, unless prohibited by law. This applies to our mortgage or home equity, and also other home loan products. But this compensation does affect the content we publish or the reviews that appear on this website. We do not contain the entire universe of businesses or financial offers that may be open to you.



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3 minutes read. Published November 28th, 2022.
Authored by Rebecca Betterton Written by Auto Loans Reporter

Rebecca Betterton is the auto loans reporter for Bankrate. She is a specialist in helping readers with the ins and outs of securely using loans to buy the car they want.







Editor: Rhys Subitch Edited by Auto loans editor

Rhys has been writing and editing for Bankrate since late 2021. They are dedicated to helping readers gain the confidence to take control of their finances through providing concise, well-researched and well-organized information that breaks down complicated topics into bite-sized pieces.









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As the holiday season approaches, the final thing you should consider is the possibility of recession expected to arrive over the next few years. However, not all ignorance is bliss. Growing inflation and the likely recession will impact every aspect that affect the economic. This includes car buying and new cars being introduced being purchased in October, according to Kelley Blue Book. If you're in the same boat as those who are worried about this recession, a little patience could save you money. Rather than gifting a car with a big bow this season -for you or someone else- consider where prices stand and how you can best prepare for the future . Recession preparedness statistics Unfortunately, the holiday season is famous for its extravagant spending -- often times resulting in consumers overspending. A recent study revealed that nearly 27 percent of shoppers admit to straining their budget in the name of gifts for the holidays. If they stay in line with their spending habits this year, issues may arise. In March of 2022, even though inflation was up 8.5 percent, people spent more more than two years earlier, according to a McKinsey study. 51 percent of adults think inflation will rise one year from now than it is today. Car loan balances are at November 2022. The average monthly installment for new vehicles in the second quarter of 2022 was $667. The monthly average for used cars in the second quarter 2022 stood at $515. The number of new vehicles sold dropped from over 16.9 millions in the year 2005 until the recession. 41 % of Americans do not feel prepared for a recession if it occurred before the end of 2023. 38.22 percent of Americans have financed new cars in this second quarter.


Statistics on holiday shopping Many shoppers get caught in the trap of seeking out the perfect present, which could result in spending more than they budgeted for and even putting pressure on finances. Certain shoppers this year have a different perspective, with three out of five planning to cut back on spending, according to . This is a smart option considering that the consumer price index sat at 298.1 in mid-November, up from 274.1 last year. No matter your reason for tightening your wallet this winter, now is the perfect time to be aware of how overspending can impact all facets of your fiscal health. 40 percent of shoppers say that inflation will change the way they shop this year. There's almost 29 percent more used vehicle bargains in January. The majority of people are likely to use money-saving strategies this holiday season. This winter, there is a rise in those who buy luxury cars and sports automobiles. 27 percent of people who shop for gifts admit to their budget feeling strained over the period. 59 percent of shoppers will spend less on gifts this holiday season.


How to prepare for a downturn in 2023? The drivers of 2008 were dealt a similar hand, the predicted recession in 2023 will have many elements that people 13 years ago did not have to take into consideration. Primarily, the ongoing supply chain issues which continue to increase the cost of vehicles. Due to the shortage of stock and the lack of inventory, you are unlikely to benefit from many of the discounts that '08 drivers received. Fortunately, there are still certain ways to plan when it comes to the personal finance of your vehicle and personal purchases. Take note of these tips to save money in the recession. 1. Only buy the amount you can afford. The most effective way to ensure that you do not end up in a financial cliff position when buying a vehicle is to purchase only what you are able to afford. Take the time to this number while also factoring into the things that can build up over the course of ownership , like visits to the mechanic and fueling up on the gas pump. 2. Create an emergency fund Experts suggest that you have enough money to cover three to six month's worth of expenditures. However, pennies can accumulate over time, which is why it is important to begin saving as soon as possible. Consider making your emergency fund a -- which you pay interest on. 3. While buying an electric vehicle can have more upfront costs but they'll cost you less throughout the duration of your vehicle's ownership. Less trips to the pump could result in thousands of dollars, so you should consider whether driving an electric car will fit into your budget and lifestyle. 4. Be cautious about a long-term loan Although it may seem appealing, it comes with some risks. Signing up for an extension loan could mean that your monthly cost is cheaper but it doesn't mean you'll spend more in the end -- in fact, the opposite is true. A longer-term loan extends the amount of money that you are required to pay over a longer period which means there's more time for interest to accumulate. 5. Request loan preapproval While some lenders do not offer the option to apply for loan preapproval, it's one of the most efficient methods to assess your contribution to the cost of car ownership in advance. Preapproval for loans simply means that you can lock in the monthly costs you anticipate prior to signing the"dotted line. This way, you will determine if the car you're looking at will work within your budget. 6. Refinance your current vehicle If your loan is stretching limits on your finances, you may prefer to refinance your current car to cut down on your monthly expenses. This is especially true when your credit score has increased since you took out your loan or first signed off with an agent.


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Written by Auto Loans Reporter

Rebecca Betterton is the auto loans reporter for Bankrate. She specializes in assisting readers with the details of using loans to buy a car.



Edited by Rhys Subitch Edited by Auto loans editor

Rhys has been writing and editing for Bankrate since late 2021. They are passionate about helping readers gain confidence to take control of their finances through providing clear, well-researched facts that break down complicated topics into bite-sized pieces.






Auto loans editor




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