Prepare for Recession -- Don't Buy a Car

The consensus among both American consumers and economists is that the United States will go into recession late this year, if it has not already done so. Consumers do not have much they can do to protect themselves. Oil price increases mean high gasoline and home fuel prices. People may be able to use less heating oil by keeping the thermostat setting low, or they may drive less. High food costs are harder to combat.

Americans will have to look at their largest expenses to cut costs substantially. Usually, the two items that cost the most are homes and cars. People are unlikely to move to improve their financial conditions.

It is already hard to buy most cars. Supply chain problems have left manufacturers and dealers with low inventories. This, in turn, has driven car prices higher. When people cannot buy new cars, they often turn to used ones. The prices of these have gone up as well because of the shrinking supply.

People who do not have to buy a car should avoid the temptation. The average age of an American car on the road is over 12 years. Part of the reason for this is a scarcity of new cars. Another is that cars have been better built in the past few decades and therefore last longer.

Save a lot of money. Don’t buy a car.

Sponsored: Find a Qualified Financial Advisor

Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.