Buying a new car? Your timing is excellent says automotive experts

If you’re considering buying a car but are waiting for the price to drop, your patience is starting to pay off.

Used car prices have fallen 5% over the past two months, with the average used car price dropping over $1,000 in December. This is his first significant drop in over two years. Tesla is also selling its Model 3 at a price 17% cheaper than it did in September.

Karl Brauer, Executive Analyst at iSeeCars.com, said: “Given the macroeconomic factors we have seen over the last six months, the forecast was easy. Everything from inflation to interest rates peaked, so there was no sustained upward pressure on car values. The big question is how far and how fast car prices will fall.”

Who has the most affordable car?

At Cars.com, the analyst decided to see how much the major automakers are taking the consumer’s quest for affordability to heart. What they discovered is that the car-buying market is jam-packed with cost-conscious consumers who are ready to buy.

Cars.com’s first-ever Affordability Report suggests that Kia, Chevy and Ford will offer the most affordable new cars in 2023, with Chevy leading the pack when it comes to trade-in prices. increase. Chevy has also recently turned out to be the brand that offers the best value.

What should consumers care about?

ConsumerAffairs spoke with Cars.com editor Jane Ulitskaya to find out what consumers should look for when buying a car. What is her conclusion? Do you have a budget, current interest rates, warranty options, and a car to trade in?

“Take a close look at your budget and compare how the different vehicles you’re considering affect your monthly budget.

“Shoppers should also consider how much money they want to spend and how long they need to save for a down payment. Two-thirds of consumers aim to save 3-12 months before buying a car and plan to save 10-25% on the final price before purchase.”

Interest rate factor

Ulitskaya stressed that consumers should spend time thinking seriously about interest rates. This is simply because consumers have risen significantly in the last year, so buyers are likely to see higher monthly payments and pay more. Auto loan flow.

Maintenance is another factor, but it is less of a concern with a new car than a used one. Ulitskaya said there are three automakers that have gone all out to beat the competition in the warranty space. Hyundai, Genesis, and Kia all offer 10-year powertrain and 5-year or 60,000-mile bumper-to-bumper warranties…more than any other brand.

When it comes to car trade-ins, Ulitskaya suggests visiting different dealerships and getting offers in writing. “What most shoppers don’t think is that they don’t have to sell to the same dealership they buy their next car from,” he said.