Is 2023 a Good Time to Buy a Car? (2024)

FAQs

Will car price go down in 2023? ›

The average price for a new car in 2023 was $47,936 in October 2023, which is 1.4% lower than in October 2022². But will these price trends continue into 2024 and extend to the used car market? At the end of 2023, most experts predicted that car prices would continue to fall slightly in 2024².

Experts say that 2024 will be the best year to purchase a new car since 2019. As interest rates slowly drop throughout the remainder of the year, payments will become more manageable. Don't overlook manufacturer rate promotions, as they can save you thousands of dollars.

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.

Americans planning to shop for a new car in 2023 might find slightly better prices than during the past two years, though auto industry analysts say it is likely better to wait until the fall. Since mid-2021, car buyers have been frustrated by rising prices, skimpy selection and long waits for deliveries.

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.

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.

Auto loan rates for new and used vehicle purchases fell in the first quarter of 2024 to 6.73% and 11.91%, respectively, down slightly from the 15-year highs we saw at the end of 2023, according to Experian.

Toyotathon 2023/2024 begins November 15 and will go through January 2, 2024 ! Go online to pick out your favorite New Toyota Car, Truck or SUV then schedule a test drive while you have lots of choices.

The best time to buy a car is from October through January 1, with December as the standout. This is usually the case for buying a new car and used vehicles. But if you can't wait that long, there are other times of the year when you can still get great car deals, incentives, and rebates.

How to negotiate a new car in 2023? ›

In general, when interest rates are high, buying a new car costs more if you finance part of the cost because you pay more interest. When interest rates are lower, a car costs less. In general, new cars have lower interest rates on loans while used cars have higher rates; however, used cars also cost less.

Car manufacturers often release new models and make updates to their existing lineup annually. If you buy a car in 2023, you'll have access to the latest models and features. However, if you wait until 2024, you may benefit from any improvements or additional features the manufacturers introduce.

In 2023, prices are expected to decline by roughly 10% for used cars and by 2.5% to 5% for new cars.

Inventory Recovery Continued in 2023

Vehicle scarcity and now high interest rates are keeping some consumers out of the market, so we still believe that sales can actually rise in a recession.

Auto loan rates for new and used vehicle purchases fell in the first quarter of 2024 to 6.73% and 11.91%, respectively, down slightly from the 15-year highs we saw at the end of 2023, according to Experian.

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.

New Car Prices – June 2024 Update

According to the most recent data from Cox Automotive, the average transaction price for new cars is $47,433. That's down 0.2% year-over-year, but up 0.5% since last month. Some new car segments are seeing notable price declines in 2024, while others are holding firm.

They're most likely gone forever. That's because prices, on average, are a one-way ticket, generally rising over time, and falling only when something has gone wrong with the economy. Officials at the Federal Reserve who set the nation's monetary policy are determined to keep it that way.