Consumers may want to hold back from car shopping for now

Consumers may want to hold back from car shopping for now The last few years have been quite tough on American consumers, especially in recent times. Not only has the auto industry downsized considerably, but gas prices have skyrocketed and the March earthquake in Japan caused numerous production disruptions. The market these days is not ideal, and US News and World Report suggests those who are looking for a new car wait a few months for things to calm down.

The cost of vehicles are also rising, as dealers have stopped offering incentives due to higher demand.

"Transaction prices for new cars are near record levels, and used-car prices are up, too," George Magliano, an economist at IHS Global Insight, told the news source. "The question is, how high are they going to go?"

US News suggests waiting about six months to let the Japanese supply chains resume normal operations as well. Some manufacturers reportedly don't expect business to run at a regular pace until at least November.

Also, those who want to apply for a bad credit car loan may want to wait, as the news provider says rates may be lower later in the year.