Florida is now one of the most expensive states to own a new car, and experts said supply chain issues and high-interest rates are a big part of the problem.
Last week, WPTV spoke with Ron Katz who owns a Midas Auto Shop in West Palm Beach.
He shared his thoughts about a new Forbes study that said Florida is now the fourth most expensive state to own and operate a new car.
I’d like to say it’s getting easier, but it really hasn’t,” Katz said.
On top of that, studies are showing a record-high number of Americans are missing their monthly car loan payments.
When everybody was paying very high prices the last year or two because of the demand on them, they got a higher loan,” Katz said. “Now what’s happening with the economy, being the way it is, it’s either put food on the table or pay your car loan.”
Brian Bastin, program director of Automotive Dealership Management and Business at Keiser University, was also not surprised by the new study.
“The other day it came out that the average transaction price for a new vehicle is nearly $50,000,” Bastin said. “With the supply chain as tight as it is, dealers just don’t have as many cars as they used to.”
However, most Floridians need to get from point A to point B, so you might be wondering how to go about purchasing a new vehicle in these inflationary times.
“They want to do a lot of research online first,” Bastin said. “Come up with a couple of brands they’re interested in, and the big thing is, don’t be too much in a hurry.”
He said if consumers can do it, waiting and shopping around to find the best price is key, as all eyes are on the supply chain.
“Supply is starting to ease up a little bit,” Bastin said. “We have a few more vehicles out there. The last couple of years with microchip problems in the industry, it’s really been a big constraint.”