Will 2023 Be the Time to Finally Buy a Car?

The past few years have been tough on the new and used car markets. From supply chain issues to price increases and production slowdowns, buying a car has not been easy. But 2023 is a new year, and many experts predict more stability and lower prices. So, is 2023 the time to finally head to used car dealers and buy a car? Let’s take a closer look at what we might see coming in the auto industry.

The New Normal

While 2023 is looking better for car buyers, it will still look different than it did in the past. Supply chain issues are easing, making it easier for automakers to produce new cars, but what does this mean for buyers?
With more new cars available, buyers can get their new car instead of settling for a used one. This means used car dealers will have more inventory, which can mean lower used car prices. Larger trucks, luxury vehicles, and SUVs are where you’ll probably see the prices drop the most.

Rising Interest Rates

One snag in the equation for used car buyers could be the rising interest rates. The higher rates will make it more expensive to buy a car, and since new car rates are usually lower than used car rates, it may mean that it is cheaper to buy a new car than a late-model used car.
This does not mean you shouldn’t look at used car dealers for some great deals, especially in the second half of the year after price trends normalize. It might take a few months for the supply and demand for used cars to fall into a normal relationship, but once it does, you could see better-used car prices.

How Do Electric Vehicles Factor into the Equation?

Sales of electric vehicles will continue to grow as more people adopt the EV lifestyle. The electric vehicle market continues to outpace both gas-powered new vehicles and used vehicles, and with more mainstream automakers coming out with new EVs in every market segment, there are no signs of it slowing. Instead, it’s becoming more manageable in spite of some long waitlists for certain electric vehicles.

What to Consider Before Buying in 2023

The best time to buy a car depends on your needs and finances. The current market conditions may play a part in whether you wait a few months or a year and what type of car you buy. Always consider your finances, interest rates, insurance costs, and supply chain issues as you weigh the pros and cons of buying a car.
Another thing that might factor into your car buying decision is fuel prices. EVs and hybrids can help ease pain at the pump, especially if we see prices start rising again as summer nears.
With more new cars and trucks available in 2023, don’t be surprised when you see more options at used car dealers. It may just be the year for you to get a car whether you want a brand-new car or a used one.