3 Reasons Why Now May Be a Smart Time to Buy
Though many things are uncertain these days, market conditions show that now may actually be a great time to make a major purchase.
If you've been thinking about buying a new car or investing in a big home improvement project, here are three reasons why it may be a good time to get a great deal.
1 Interest rates remain low
Interest rates have been historically low for a long time now. Recent economic circumstances had many wondering if inflation would return and interest rates would increase—but that hasn't happened. With interest rates still low, there's plenty of time for you to get a good deal on financing.
2 Supply exceeds demand
Since the pandemic, demand for many consumer goods and products has declined—leaving businesses with inventory they can't move. When demand goes down, companies often lower their prices to encourage you to buy. So if you're in the market for a new car, furniture or major appliance, you may be able to take advantage of reduced sticker prices.
3 Spending habits have changed
In today's climate, people are working, eating and vacationing at home. With fewer available spending options, some might decide that fun doesn't have to cost money, while others may strengthen their handle on their budget.
If you sense that your buying priorities have changed, too, then now may be the right time to reevaluate and choose to spend money on things that will bring you happiness both now and in the future.
Always put your financial health first
Of course, before spending, you should always make sure you're financially secure—meaning you are able to pay upfront or have income to repay the debt if you plan on financing a purchase. You should feel confident that your financial future is stable and have three to six months of expenses set aside to get you through an emergency.
Now may be a good time to make a major purchase, but in the end, only you can decide if the time is right for you.
A few financial insights for your life
This information is provided for educational purposes only and should not be relied on or interpreted as accounting, financial planning, investment, legal or tax advice. First Citizens Bank (or its affiliates) neither endorses nor guarantees this information, and encourages you to consult a professional for advice applicable to your specific situation.