At Clay Cooley in Irving, potential car buyers are racing against time and rising prices.
The auto industry has been hit hard by global supply chain difficulties and a chip shortage that has meant some orders arrive months later than expected.
In addition to the chip shortage, Clay Cooley COO, Chase Cooley, predicts that interest rates will rise, leading to higher car payments with an increased impact on expensive vehicles and used car sales.
Cooley said dealerships have “the fewest cars [they’ve] never had” and that “now is the best time to buy a car”.
Cooley sees interest rates continuing to rise over the next few months. At present, he thinks you can still get favorable offers and that “used [car] the values are still high, so you’re still getting a lot for your trade.”
SMU economist Mike Davis said “the threat of an economic slowdown is higher now than it has ever been.”
Davis worries that the Fed, which controls short-term rates and credit card rates, is waiting too long to counter rising rates.
“If you have a balance on your credit card, try to pay it off as quickly as possible,” Davis advised.
Davis added, “If you’re thinking about a new car, a new house, just understand that it’s going to cost more to borrow money for that.”
Jodi Erickson, a potential car buyer, has chosen to focus on paying off her credit cards rather than accepting new financing under current terms.
Erickson said the rate hike was the reason she was very hopeful of closing a deal today.
“I knew this was going to impact my purchases and I needed financing and it was going to make a difference in how much I could afford which is why I really wanted this done before the banks make the change,” Erickson said.