In recent years, supply chain issues and other economic uncertainties have significantly impacted the automotive industry. According to J.P. Morgan, the price of new cars jumped by 6.3% in 2022, and as a result of the sticker shock, consumer demand for pre-owned vehicles skyrocketed by 42.5%.
So, will this year be any better?
Here is everything you need to know about buying a car in 2023.
Is It Cheaper to Buy a Car in 2023?
Higher car prices appear to be staying for the foreseeable future. J.P. Morgan reports that new car prices will only decrease by no more than 5% in 2023. As supply chain issues are expected to improve, more new cars will be available for sale. This can reduce the demand – and the cost – of pre-owned vehicles.
Rising Interest Rates
Furthermore, rising interest rates have boosted the price of leases and auto loans. Since they have lower interest rates, buying a brand-new car would be more cost-effective than purchasing a two- to three-year-old model.
Preparing to Buy a New Car
If you plan on buying a new car in 2023, it’s essential to get your credit score in order. A higher credit score means you will be entitled to lower interest rates.
Changes in the Automotive Industry
To be blunt, 2023 isn’t a year for car-buying bargains. The global pandemic reshaped the automotive industry, and changes will continue as we progress deeper into the decade.
Are New Car Prices Increasing in 2023?
Luckily, this is not the case. But don’t expect to see a drastic price decrease in new cars. The price of new vehicles will drop by 2.5% to 5%, with pre-owned car price tags seeing even sharper declines, with rates expected to drop by 10% to 20% throughout the year.
What Month Did 2023 Cars Come Out?
New 2023 car models already started cropping up last fall. For instance, many automakers debuted their 2023 lineup in the fall of 2022. That means out with the old, and in with the new. Many dealerships will start making space on the showroom floor for brand-new cars. If you see a 2022 model still on the lot, it probably comes with a deep discount.
When is the Best Time to Buy a New Car?
Many people in the market for new cars might wonder when the best times to buy them are.
Benefits of Buying in May
Some experts believe May is ideal because the spring and winter auto show seasons are over. As a result, dealerships will start offering hefty discounts to get rid of their “old” inventory. Additionally, Memorial Day weekend sales are often the best ones of the year.
Benefits of Buying in October to December
Another opportune time to purchase a new vehicle is at the end of the year, from October to December. As we previously mentioned, this is when next year’s models will be released, and dealerships will start offering special savings for 2023 cars and even 2024 cars. Many salespeople are trying to reach their year-end quotas and will be happy to make you a deal.
EV or Gas?
With electric vehicles (EVs) becoming more ubiquitous, many consumers wonder if they should buy a gas or an electric car. This is more a matter of personal preference.
Under the Biden administration, new EV buyers could qualify for tax credits of up to $7,500. An electric vehicle will save you money at the pump, has fewer maintenance needs than gas cars, and can help you reduce your carbon footprint.
However, the starting price of an EV is far greater than that of a traditional vehicle.
Should You Buy a Car in 2023?
If your old car is on its last leg, buying a new car in 2023 could be your best option. However, if your current vehicle is in great shape, you might want to keep it for a few extra years.
At Elite Window Tinting, we will help you fall in love with your current ride all over again. Our paint protection film solutions will protect your car’s paint from scratches, bug splatter, fading, and bird bombs for up to 10 years. PPF also boosts your vehicle’s resale value and makes your paint easier to maintain. Or, enhance your car’s aesthetics with our window tinting services. Our window films improve your privacy, comfort, and safety.
To learn more, contact us today by calling 503-744-7999.
Owner/Founder at Elite Window Tint
Kenley started tinting in Kennewick, Washington in 2002.In 2005 he moved to Milwaukie and joined the Elite team, quickly distinguishing himself as a great innovator of creative solutions to the numerous challenges in applying film.He refined and developed his craft over the years, eventually taking the helm as owner in 2012.Kenley’s amicable and easygoing demeanor makes him very popular, and he takes great pride in delivering great customer service.
Latest posts by Kenley Wallis (see all)
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FAQs
"After historic value increases in 2020 and 2021, followed by above-average depreciation for most of 2022, used-vehicle values are likely to see another year of above-normal depreciation, especially in the first half of 2023," says Smoke.
Should I buy a car right now in 2023? ›
Conclusion: Is 2023 a Good Time To Buy a Car? Considering vehicle prices are still inflated and loan rates may be on the rise, it's not the best time to buy a car. However, auto prices may continue to level off during the rest of the year, which would be a good sign for car buyers.
Is 2023 a good year for cars? ›
Higher car prices appear to be staying for the foreseeable future. J.P. Morgan reports that new car prices will only decrease by no more than 5% in 2023. As supply chain issues are expected to improve, more new cars will be available for sale. This can reduce the demand – and the cost – of pre-owned vehicles.
Are car prices expected to go down in 2023? ›
After record-high used vehicle prices declined notably in 2023, pricing is expected to be relatively stable this year. Cox expects wholesale prices on its Manheim Used Vehicle Value Index, which tracks prices of used vehicles sold at its U.S. wholesale auctions, will end the year up 0.5% from December 2023.
Should I buy a 2023 or 2024 vehicle? ›
New cars tend to experience the most significant depreciation in the first few years of ownership. If you buy a car in 2023, its value will likely depreciate more quickly compared to a car purchased in 2024. This is an important consideration, especially if you plan to sell or trade-in your vehicle in the future.
What not to say to a car salesman? ›
Eliminating the following statements when you buy a car can help you negotiate a better deal.
- 'I love this car! ' ...
- 'I've got to have a monthly payment of $350. ' ...
- 'My lease is up next week. ' ...
- 'I want $10,000 for my trade-in, and I won't take a penny less. ' ...
- 'I've been looking all over for this color. '
It turns out that some times are better than others to buy a car. Even though there often are sales on vehicles throughout the year, such as around Memorial Day and Labor Day, the final few months of the year — think October to December — is the real sweet spot for buying.
What is the best car brand for reliability in 2023? ›
Other premium brands ranking high for vehicle dependability include Genesis (144 PP100), Cadillac (173 PP100) and BMW (184 PP100). Kia (152 PP100) ranks highest in the mass market segment for a third consecutive year, followed by Buick (159 PP100), Chevrolet (162 PP100), Mitsubishi (167 PP100) and Toyota (168 PP100).
What is the #1 selling vehicle in America? ›
1. Ford F-Series. The Ford F-150's offers the best attributes of a modern pickup: power, efficiency, comfort and capability. Add to that a huge range of configurations and options, and you've got the best-selling vehicle in America for 2023.
What is the most reliable car on the market? ›
Lexus ranks highest overall in vehicle dependability for a second consecutive year, with a score of 135 PP100. Among premium brands, Porsche (175 PP100) ranks second and BMW (190 PP100) ranks third. Toyota ranks highest in the mass market segment, with a score of 147 PP100.
Despite that, prices are still higher than they should be, as a new iSeeCars study found that the average new car is priced above MSRP, though they're slightly less painful than they were a year ago.
Is there still a car shortage in 2024? ›
The automotive supply chain will likely never look like it did pre-pandemic, but inventory levels generally recovered in 2023 and are expected to continue doing so in 2024 and 2025. Car prices remain elevated in 2024 due to inflation but are showing initial signs of decreasing as inventory stabilizes.
What is the average American car payment? ›
Car payment statistics
The average monthly car payment for new cars is $738. The average monthly car payment for used cars is $532.
What month should I buy a car in 2024? ›
When is The Best Time to Buy a New Car in 2024. In general, the best time to buy a new car is during the last week of the year. In 2024, that would be from December 26 – 31. The reason why the last week of December is the best time to buy a new car is due to the huge increase in manufacturer incentives during that time ...
Do you negotiate car prices? ›
As independent franchises, dealers can sell the car at any price. Some dealerships and brands have developed no-haggle pricing. The price on the window is the price of the car, they say. In most cases, you'll still need to negotiate the value of your trade, the cost of financing and the price of any add-ons.
Why are used cars so expensive 2024? ›
Used car prices are likely to stay “structurally higher” because fewer new cars were produced during the pandemic due to shutdowns and chip shortages. That means more drivers held on to their previous cars, making fewer used cars available on the market, Ryan said.
What is the car prediction for 2023? ›
2023: A Surprisingly Strong Sales Year
Full-year 2023 U.S. auto sales, based on vehicle counts by Kelley Blue Book, are forecast to finish near 15.5 million units, an increase of 11.6% from 13.9 million in 2022 and ahead of Cox Automotive's forecast from one year ago.
What will happen to some cars in 2023? ›
Farewell Acura NSX, Nissan Rogue Sport, Lamborghini Aventador, and Toyota Avalon. The checkered flag is waving for a number of vehicles after the 2022 model year.
Is car shortage getting better in 2023? ›
Automotive manufacturers are still dealing with the effects of the microchip shortage that began in 2020. Sam Fiorani, vice president of global vehicle forecasting at AutoForecast Solutions, told reporters that he believes the industry will see 2-3 million units cut from production in 2023.
Is it financially better to buy a new or used car? ›
A new car may cost you less in terms of repairs, at least for the first few years. By the time the vehicle starts to need major repairs and upkeep, you may be ready to trade it in. If you pay cash, a used car may cost you more for maintenance but less in interest charges on a loan.
