Car prices going up, local residents in total disbelief of the recent prices on the used and new cars market

Iowa’s Council Bluffs – The likelihood is that buying a car will cost more than you anticipate.

According to Cox Automotive/Analytics, Moody’s the average monthly auto payment has reached a record high and is now above $700. The sum is stunning to those who were in Council Bluffs’ downtown on Tuesday.

Christina Jackson remarked, “It’s a lot of money, especially on top of everything else that people are spending on their budgets.

Bonnie Williams remarked, “I don’t see how young people can even afford a car to get to work, and old folks who are senior citizens pay for something like that.

Harold Boltinghouse stated, “We take each day into consideration: we plan out our monthly statements, we plan out all the numerous bills so to have to accommodate a car payment of that amount, it’s ludicrous.

Joshua Rybin, the proprietor of the used automobile company Real Value Auto, is unsurprised by the monthly car payments.

“They are substantially greater than they used to be in terms of proportion. Supply chains: getting vehicles in, getting trade-ins, us being able to get vehicles, the quality of vehicles, etc., sort of drip down from the new car stores “explained Rybin.

These exorbitant auto payments have their roots in the pandemic’s lack of computer chips. Because fewer new automobiles were produced, there was a greater market for secondhand cars, which raised costs.

According to the Bureau of Labor Statistics, the cost of a used car has increased by 16.1% over the past year, while the cost of a new car has increased by more than 12%.

Rybin acknowledges that high prices have cost him some clients, and he has noticed a change in clientele’s buying habits.

Since motorbikes use two to three times as much petrol than cars or SUVs, Rybin believes that the general increase in gas prices has contributed to some of our sales.

Boltinghouse, who identifies as a working-class man, is aware that getting around in Southwest Iowa necessitates a car.

“You require trustworthy transportation. What will we do if we raise costs too much and eliminate transportation?” He spoke.

Currently, a new car costs $47,000 on average. The amount of the down payment and the interest rate being provided affect the monthly installments.