Buying a car is one of the most expensive purchases that most people make, which is why it can be so upsetting when a new vehicle you buy has defects. California lemon law provides protection to car buyers whose vehicles have problems, but often you'll need to hire an attorney to get the necessary help to pursue an appropriate remedy.
Unfortunately, car buyers could soon find that the vehicles they purchase are even more expensive than they currently are. That's because Consumer Reports indicates all signs point to a surge in vehicle prices in the near future.
Signs Point to Rising Vehicle Prices
According to Consumer Reports, there are a number of different factors that have experts convinced cars will soon be more costly.
One issue is that interest rates are rising, which means financing a car will be more costly since you'll have to pay more in interest to the lender. It has become more difficult to find special promotional rates such as 0% interest for a period of time on new purchases. Consumers may be forced into taking longer loans if they cannot afford the higher monthly payments – which means paying even more over time because interest ends up being charged for a much longer duration.
Another issue is that threatened tariffs are prompting car makers, and suppliers of vehicle parts, to raise prices. One particular tariff that was aimed at China and that was announced recently could be enough to add thousands of dollars to the price of a vehicle. A 20% tariff on cars built in the European Union could also raise the prices of these imported vehicles by anywhere from $4,000 to $5,000.
Even domestic vehicles are likely to see higher prices due to tariffs, as Toyota told Consumer Reports that a 25% tariff on import cars would raise the price of a Camry Sedan by $1,800 even though the Sedan is built in Kentucky. Domestic vehicles will be more expensive because they use imported parts; because it's likely that other countries would retaliate by putting tariffs on U.S. built cars, and because many American manufacturers have a global presence and import at least some of their line of vehicles.
Since tariffs are expected to raise the price of new cars, this is expected to increase demand in the used car market, which means that it is likely there will also be big price increases for people who are buying older cars.
Finally, rising fuel prices are also likely to make transportation costs more expensive for consumers, both because higher oil costs cause inflation which increases the cost of all goods and because they'll pay more at the pump after they buy their cars.
When cars become more expensive, the potential for loss is even greater when something goes wrong with your vehicle. A California lemon law attorney can represent your interests and help you to pursue an appropriate remedy if a car you buy has defects. Contact an attorney today to find out more about your legal options and to get an advocate working for you.