As tariffs continue to impact prices, many consumers are feeling the pressure to act quickly. However, Ted Rossman, Senior Industry Analyst, Bankrate joined TheStreet to explain why rushing into big ticket purchases could be a costly mistake.
Related: Tariffs will devastate this entire industry
Full Video Transcript Below:
TED ROSSMAN: It’s important to look past the daily tariff headlines. You want to make sure that you’re thinking about the long term. For example, we believe that car prices are going to go higher. That doesn’t necessarily mean you should rush out and buy a car right now, though, because the average monthly car payment for a new car is about $750 a month. And while that could be going up, you know what’s even better is a $0 a month car payment.
So if you can drive your existing car another year or two, rather than rushing into a purchase that you might regret. Because what if you end up overspending? Or what if tariffs don’t do what we think they’re going to do? Maybe you rush to buy now and you don’t even get the car you want, and you’re stuck with this high price tag. You want to think about the long term. That’s true for your investments, but it’s also true for purchasing decisions. I mean, honestly, it’s probably not the best time to make a big ticket purchase and a lot of people are nervous. But then again, if it fits your long term plan and you have the money and you’re not going into debt, well, then maybe that’s fine. But don’t rush to go into debt now because something may or may not happen in the future.
