There’s been a big spike in used car sales since the president’s tariffs were announced.
Carfax said the prices for used cars are going up, too. That means used car shoppers must be careful.
“I’ll still be paying for this car in my grave,” Deslin Pandolph told WSB-TV Atlanta investigator Justin Gray about her 2021 Nissan Rogue Sport.
When Pandolph went shopping for a used car last year, she focused on the monthly payment.
“My goal was to not have to pay more than $400 a month,” she said.
The 70-year-old retiree now admits that she didn’t pay close enough attention to the interest rate she was offered when she bought a car at Enterprise Car Sales.
She’s paying 24.999% interest.
“When I saw it, I’m like, oh my gosh,” Pandolph said.
She’ll end up paying more than $40,000 for a $20,000 car. Nearly as much in interest as the car’s price.
“I was ignorant. I needed a car to get to work, and I didn’t really look at the interest rate that much,” she said.
The confusion with the tariffs and new car prices has led to a rush in used car sales and prices, according to data from Carfax for the past six weeks.
“The surge in used car sales is more than twice what we saw last spring,” said Em Nguyen from Carfax.
Carfax said prices are up too. The average cost of a used car up $900.
WSB-TV Atlanta consumer advisor Clark Howard said that’s why you should never walk into a car dealer, used or new, without a financing plan.
“Even if your credit is really iffy, you want to join a credit union. Because if a credit union will write your loan, it will be at a fraction of the interest rate that it will often be at the dealer if your credit is not the best,” Howard said.
Enterprise Car Sales said in a statement that it partners with third-party companies for car loans:
“We present financing options to customers based on approved credit terms that are established by these financial institutions, not Enterprise Car Sales. Further, we do not markup credit terms and do not present financing options with an interest rate above 24.99%.”
That’s the exact rate Pandolph is now struggling to pay.
“Sometimes I don’t even want to go out, you know, because of stress,” she said.
Pandolph is now underwater with that loan; she owes more than it’s worth.
The other big piece of advice for used cars is to get an independent mechanic to inspect the car before you buy.
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