The price for used cars reached unprecedented highs over the last couple of years, and consumers are ready for a change. Finally, after two years of wondering where you could buy a reasonably priced car, the market for used cars is beginning to fall, and 2023 is going to be the year prices drop.
Demand for cars, in general, has been high ever since the worldwide 2020 parts and chip shortage. Due to Covid-19 and other unfortunate factors, manufacturers around the globe struggled to supply the world with cars, parts, and other important mechanics. This caused a shortage, which, in turn, caused an increase in demand, which, in turn, caused the price of new and used cars to
reach record-breaking highs. At one point, used cars were being sold on average 70% more than they were expectedly worth.
But, finally, the days of overpriced cars are coming to an end. In 2023, new cars could drop 10% in price, and used cars could drop around 20%. This is huge for anyone looking to buy a car soon.
If you hope to buy a car soon, then you may be in luck. Prices are beginning to fall, and if interest rates also start falling, it might be the time to buy, so keep reading to find out more.
A Light At the End of the Tunnel for Shoppers
Consumers can breathe a sigh of relief. Prices are dropping, and experts say they are only going to drop further. J.D. Power predicts that prices for new cars will drop 2%-10%. With predictions of an overall decline in used car sales in 2023, dealerships and even private sellers will be motivated to come down on prices.
The caveat, though, could be financing. While price tags might get lower this year, it is unclear if interest rates are going to improve too. Unless you can buy a car with cash, you’ll want to be careful when financing a used or new vehicle, especially if your credit score took a hit during the pandemic.
Buying used is going to be a heck of a lot better than buying new. New car prices are going to take more time to drop because sellers are keen to get the most money out of their inventory as possible. On the other hand, used cars will be cheaper and easier to procure.
What to Plan For When Shopping for Used Cars
Now you know. 2023 should be a good year to buy a car, but how can you capitalize on this information? Knowing when and how to go about buying a car is important. If you buy from a dealership or a used car dealer, you’ll want to ensure you get a great deal.
One way of doing that is by checking the Kelly Blue Book Price and Carfax report. Even though interest rates are still high, you’ll want to know what to expect and try to get a lower one. This will save you money in the end.
Good luck and happy shopping!
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