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.
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