And then sort of finding alternatives." How can I get the best car deal? "You can certainly help yourself by doing a lot of research and figuring out what you want, what you need. "If you need a car now, you should get a car now," Preston said. But shoppers don't necessarily have to wait to get a decent price because many automakers are starting to offer incentives.Ĭonsumer Reports advises consumers to buy a car when they need it, Preston said. If buyers can wait, they can expect to see lower prices next year than today, Jominy said. The end of the month, end of the model year and holiday weekends are also usually a prime time to score a deal on a new car. But there are other good times to buy a vehicle if a consumer needs a car sooner. The final months of the year – October, November and December – typically see the deepest car discounts, and deals on new cars usually coincide with the introduction of new models, according to Edmunds, which makes current cars and trucks less desirable.ĭecember typically has the best deals, with the biggest discounts available on New Year's Eve, according to CARFAX. Recalls: 140,000 Chevrolet Bolt electric cars recalled to fix seat belt issue that can cause fires What is the cheapest month to buy a car? How reliable is your vehicle? Consumer Reports ranking for the most reliable cars of 2023 are in The prices for traditionally cheaper options like compact and midsize cars have increased this year amid consumer demand for affordable vehicles, according to Edmunds data.įactors such as the war in Ukraine, which has exacerbated supply chain interruptions, and the chip shortage will ultimately determine how much prices will decline, said Benjamin Preston, an automotive reporter at Consumer Reports. “We estimate that half of the increase in new vehicle prices relates to the passing along of higher input costs, including raw material costs,” Ryan Brinkman, lead automotive equity research analyst at J.P. Morgan, said in the report. The rise in new-car prices has fueled the demand for less expensive used vehicles, according to J.P. New-car prices have risen because of increased costs of raw materials and shortages of chips for computers that control a vehicle's gas pedal, transmission and touch screen. Say goodbye to these models: What cars are being discontinued in 2023? Honda, Toyota and Chevrolet are all axing models In November, the average interest paid over the life of a new-car loan reached a record $8,436, and the average interest paid over the life of a used-car loan reached an all-time high of $10,204, according to Edmunds.īest car deals: Here's how to score a year-end discount this December "It's tough to say how it will come out in the wash," Jominy said. "But in general, it should be, on net, good for consumers when these prices come down." Rising interest rates, however, could offset the decline in vehicle prices, meaning Americans who finance their cars may not see as much, if any, relief. But it was also the first time since July 2021 that the average paid price fell below the average manufacturer's suggested retail price, or MSRP. When that happens, it signals that some buyers are able to negotiate a lower price for vehicles. Their average transaction price hit a record $47,681 in November, according to car pricing site Edmunds. New-car prices, meanwhile, are still historically high. The average used car sold for $27,156 last month, a 1.5% decrease from October, according to Kelley Blue Book. Used-car prices have fallen after surging in 2021, with a recent drop of more than 3%, according to U.S. "As the inventory increases, we will expect to see prices come down for consumers, so it's mostly good news," he said, adding that buyers can expect to see the supply on dealer lots increase. Power projects new-car prices will fall somewhere between 2% and 10% next year, according to Tyson Jominy, vice president of data and analytics at J.D. Prices could drop up to 5% for new vehicles and 10% to 20% for used vehicles, according to a report in November from the bank J.P. Morgan.Ĭonsumer research firm J.D. But 2023 may finally bring some relief.Īs demand stabilizes and inventory improves, prices are expected to ease. Watch Video: Consumer Reports release its best, worst cars of 2023 listĬar shoppers have faced sky-high prices for more than a year in part because of high demand and tight inventory.
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