WalletHub: 87 million Americans will look at cars to buy this Labor Day Weekend
With 87 million Americans planning to look at cars to buy this Labor Day weekend, according to WalletHub research, the personal-finance website released its Q3 2021 Auto Financing Report, along with its 2021 Labor Day Weekend Car Sales Survey, to help consumers find the best deals on new and used cars. You can find highlights from both below, along with a Q&A with WalletHub analyst Jill Gonzalez.
- The average APR for a new car loan is 3.89%. The average rate for a used car loan is 4.49%.
- People interested in leasing a car should take an extra-long look at the fine print, as car manufacturers continue to lack transparency regarding leasing offers. The average automaker received a WalletHub Transparency Score of 4.6 out of 10.
- 23% more Americans will look at cars this Labor Day weekend than in 2019.
- 55% of Americans feel more financially secure buying a car this year than pre-pandemic.
- 91% of consumers are still more likely to buy a car in-person rather than online.
- 58% of Americans would prefer to buy an American-made car this year.
Q&A with Jill Gonzalez, WalletHub analyst:
How interested are Americans in buying cars this Labor Day weekend?
“Americans are very interested in buying cars this Labor Day weekend, as 23% more people will look at cars this year compared to 2019,” said Jill Gonzalez, WalletHub analyst. “This is great news for car manufacturers and sellers, because car prices are currently at an all-time high and these companies stand to make large profits. Interest in buying cars is also a good indicator of consumer confidence because it shows that a growing number of people feel financially stable enough to make big purchases.”
How safe do consumers feel about buying cars, both in terms of health and finances?
“Consumers seem to feel that purchasing cars in person is safe, considering that 91% of them are more likely to purchase a car in person than online. This makes sense because the U.S. has largely reopened and a large percentage of the population has been vaccinated against COVID-19,” said Jill Gonzalez, WalletHub analyst. “When it comes to feeling financially safe, there’s also good news, as 55% of Americans feel more financially secure buying a car this year than they did before the pandemic. This shows that people are starting to recover from the devastating economic impact of the pandemic.”
Do consumers prefer American-made cars over foreign-made vehicles?
“Around 58% of Americans prefer cars that were made in the U.S. over cars made in other countries,” said Jill Gonzalez, WalletHub analyst. “The fact that a majority of Americans prefer domestically manufactured cars should give an extra boost to American manufacturers and help them expand their hiring efforts in the wake of the pandemic.”
We recommend that prospective car buyers check their credit scores for free on WalletHub and leverage a Car Payment Calculator to determine an affordable monthly auto-loan payment and realistic payoff timeline.