Page 15 - AAA Now! – AAA Shelby County – November/December 2021

AUTOMOTIVE SERVICES
FINANCE CHARGES:
The cost of vehicle loans decreased due to a drop in the prime lending rate. The average interest rate in 2021 is 4.12%, which is 1.056 percentage points lower than last year.
As part of the Your Driving Costs study, AAA tracks changes in buying patterns and makes changes to the type of vehicle categories considered to match those trends. For several years now, buyers have moved away from previously popular categories like sedans to newer styles like compact SUVs. For 2021, AAA added two new categories: subcompact
SUVs and midsize pickup trucks. These replaced large sedans and minivans, both of which no longer offer enough new models to be tracked.
The average price of a new vehicle for 2021 is $32,903, which is $1,502 (4.78%) higher than last year but is mostly due to the addition of new models to the Your Driving Costs study. Models in the small sedan, medium sedan, medium SUV and hybrid categories averaged an increase in vehicle price of $3,064, led by hybrids as consumers opt for larger (hence more expensive) models in this category. Pickup trucks saw an increase of $4,684 (an average of 11%); however, this has not affected their popularity, as they remain the best-selling category of those
included in the study.
Buying a car is the second biggest purchase behind
a home that most people will make in their lifetime. The car buying process can be seen as difficult, time- consuming and stressful. With strains on inventory this year, it is critical for consumers to do as much research as possible before beginning the buying process. Understanding all of the options available as well as individual needs can ease some of the anxiety associated with purchasing a car. AAA offers the following guidance when it comes to shopping for your next vehicle:
• Before considering any specific makes or models, consumers should determine what makes sense for their budget, including trade-in value and down payment amount.
• Another important consideration is whether
to finance or lease. For someone who is an early adopter of new technology, likes to change
cars often or doesn’t put a lot of annual miles on
a vehicle, leasing may make more sense. Consumers should evaluate both options and pick the one that will best suit long-term needs.
• Manufacturers and dealerships sometimes offer extended loan terms as an incentive to buyers. In some cases, these loans can be as long as 84 months with interest as low as zero. Initially, a loan like this may be attractive to a buyer since it helps lower the monthly payment. However, consumers should know that with long-term loans comes
a period of time when the vehicle will hold less value than what is owed due to depreciation.
• Look at pricing options for both new and slightly used vehicles. New vehicles typically come with longer warranties, buying incentives from the automaker, the latest features and are widely available. When it comes to used vehicles, there are two types to choose from – certified pre- owned and used. The advantage of a certified pre- owned vehicle is the original owner has absorbed the majority of the depreciation cost, while the vehicle still has quite a few of the latest features
and a manufacturer’s warranty.
• Consumers should test drive the exact model of the car they want to purchase. If possible, they should pick a route that mirrors their daily driving routine. It is a good idea to test the car’s ride quality and handling on a number of different road surfaces: city streets, hills, freeways and winding roads.
• The most important thing to remember is in most cases, there are three separate negotiations that occur when purchasing a car: the price of the new vehicle, trade- in value and finance rate if applicable. Consumers should take their time and negotiate them individually.
Consumers can calculate their annual driving cost through AAA’s digital brochure on Newsroom.AAA.com. AAA offers a number of resources consumers can use while car shopping, including the AAA Car Guide and AAA’s car buying program.
Your ticket to exclusive rewards!
For information about rates, fees, other costs and benefits associated with the use of this credit card, or to apply, visit your local AAA and refer to the disclosures accompanying the application. 1Credit Card Bonus Points Offer: You will earn 5 points per dollar spent (consisting of 4 bonus points and 1 base point) on AAA Tickets transaction(s) that have a transaction date from November 1, 2021 through December 31, 2021. Purchases made through merchants other than AAA Tickets will not qualify for bonus points. A qualifying transaction is determined by the merchant identification number (MID) provided by AAA Tickets. Your purchase may not qualify to receive the bonus earn rate if the purchase has an incorrect MID. This promotion will not impact the standard earn rate on purchases or the bonus rewards offers on travel, gas, grocery store, wholesale club and drugstore purchases. The value of this reward may constitute taxable income to you. You may be issued an Internal Revenue Service Form 1099 (or other appropriate form) that reflects the value of such reward. Please consult your tax advisor, as neither Bank of America, nor its affiliates, provide tax advice. Bonus points earned as a result of this promotion will not receive any Preferred Rewards/Preferred Rewards for Wealth Management Program Bonuses. Details are available at bankofamerica.com/preferredrewards. 2 Offer applies to concert, theater, sporting event, attraction and movie tickets nationwide. Prices and discounts are exclusive to AAA members and automatically applied by shopping through AAA.com/tickets. All orders are subject to approval and acceptance by MemberDeals. Delivery fee and other conditions may apply. ©MemberDeals.com Entertainment Benefits Group, LLC. All Rights Reserved. This credit card program is issued and administered by Bank of America, N.A. Visa and Visa Signature are registered trademarks of Visa International Service Association and are used by the issuer pursuant to license from Visa U.S.A. Inc. The Contactless Symbol and Contactless Indicator are trademarks owned by and used with permission of EMVCo, LLC.AAA is a registered trademark of American Automobile Association, Inc. ©2021 Bank of America Corporation ©2021 AAA MAP3710522
If you’re not a Member Rewards cardholder, visit AAA.com/creditcard to apply today!
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