Why Now Is a Great Time to Buy a Volkswagen Car Despite Loan Interest Rates

4 Reasons That Will Have You Convinced a New Vehicle Cannot Wait

For those who have been keeping an eye on the financial market, you’re probably aware that the Fed is strategically increasing interest rates to push inflation down. The interest rate hikes impact home loan rates, credit cards, and, of course, new car loans.

To the casual onlooker, this may indicate that now is potentially a bad time to consider opening a new line of credit or take out a personal loan for a vehicle or home mortgage. However, there are some things that ring to the contrary when discussing new vehicles. After all, an interest rate is merely one facet – although an important one – of a loan.

The following breaks down why now is a great time to consider a new Volkswagen car purchase. After reviewing the top three reasons you should think about buying a new car, it’s time for you to schedule a test drive of some of the best-selling Volkswagen vehicles of 2023 right here in South Jordan, Utah.

#1 – The Average Price of a New Car is Finally Going Down

Although auto loan interest rates are steadily going up due to the actions of the Fed, the average price of a new vehicle is going down. According to statistics shared via Kelley Blue Book, the average price of a new car showed a month-over-month decrease, which can be correlated with higher incentives that are being offered through new car dealerships. Depending on the brand of vehicle, new car shoppers may see decreases by as much as 6%.

Dealerships are reducing new and used car prices to help offset the Fed’s interest rate increase. However, it’s important to keep in mind that this is not a standardized move all dealerships are making. Be sure to compare the starting MSRP from the manufacturer versus the sticker price you see at a new car dealership. That’s the only true way to gauge a new Volkswagen car’s price reduction.

#2 – Everything is Negotiable, Including Your Interest Rate

A natural-born car haggler will likely be aware of this second bit of advice. When buying a vehicle, nothing is set in stone until you sign on the dotted line. That means the price of the car and the interest rate are not locked in until you formally agree to it.

You may be able to negotiate the interest rate with your lender. However, the amount of power you have during negotiations depends on several factors. Most notably, your credit score and your down payment are your two biggest bargaining chips.

According to the Consumer Financial Protection Bureau, the interest rate that you are initially offered on a car loan may not be the lowest one you qualify for. As a consumer, the onus is on you to negotiate for a better deal. Further, there is something known as a “buy rate” to investigate, which is a term that refers to buying an interest rate down. Sometimes spending a little more upfront leads to long term savings over the life of the loan when you buy a Volkswagen car.

#3 – Buying a New Electric Vehicle Can Lead to Significant Long-Term Savings

Although the price of gasoline has significantly decreased, it is still not at the low levels we saw a few years ago. Essentially, gas prices are still a problem, but not as much of a problem as during 2022 when they were at their apex.

The 2023 VW ID.4 is a ready-made solution for those who are ready to save money at the pump. First, the Pro model of the ID.4 gets up to 275 miles on a single charge, which is more than enough for most families to get through their weeks’ worth of commuting and errands.

Further, because the VW ID.4 is manufactured in Chattanooga, Tennessee, it now qualifies for the electric vehicle tax credit, unlike previous model years of the vehicle. This will potentially award new electric vehicle owners up to $7,500 on their taxes.

Finally, the 2023 VW ID.4 comes with one other major perk that separates it from the rest of the electric vehicle pack. For the first three years of ownership, ID.4 owners will get three years of unlimited 30-minute DC fast charging sessions through Electrify America. Switching over to an electric vehicle may equate to long-term savings.

#4 – Fewer People Are Car Shopping Now

Not everyone is as savvy of a car shopper as you are. Some people are put off by car loan interest rates and opt to keep driving a vehicle that isn’t as fuel efficient or reliable as a brand-new Volkswagen.

When loan interest rates were low in 2020 and 2021, shoppers flocked to car dealerships, and competition was high for every vehicle on the lot. Today, however, you can shop around without throngs of buyers forcing you to speed up your purchase or inflating vehicle prices due to supply and demand.

Visit VW SouthTowne to Buy a New Volkswagen Car Today!

Now that you’re more informed about the advantages of buying a new car in today’s financial climate, you can move forward confidently knowing that an interest rate won’t make or break your new vehicle loan. The best way to check out a new Volkswagen car is by visiting your local dealership, located right here at VW SouthTowne.

We carry a variety of new SUVs, sedans, and compacts made to fit any driving style, storage needs, and overall budget. We can also set you up with financial services professionals who can help you buy a Volkswagen car. Drop by our dealership, conveniently located at 11000 South 290 West in South Jordan, Utah, to test drive any of our vehicles.

It’s also worth noting that VW SouthTowne is always running great deals on VW products and services, such as our current Exchange Vehicle Sale special. This limited-time offer allows drivers to get thousands off their MSRP, secure incredible rates as low as 3.9% APR (for 72 months) and get low offers on new vehicle leases. We’re also offering 1.99% interest on Certified Pre-Owned vehicles for well-qualified buyers!

Reach out to our dealership for more information on new Volkswagen car deals and used vehicle specials. Call us at (801) 988-5825 or via email using the contact form on our website.

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