The year 2022 was interesting for the automotive industry. Prices of new car decals skyrocketed due to shortages of chips and supplies for critical materials needed to build vehicles. According to JP Morgan, prices will even increase by 6.3% in 2022. That sticker shock led to a huge increase in demand for used cars, with prices there also rising 42.5% from September.
However, good news is on the horizon in 2023. JP Morgan estimates that prices for both new and used vehicles will fall as supply chain issues ease and inflation is set to ease further. According to the financial firm, new vehicle prices will fall by 2.5-5%, while used car prices could fall by 10-20%.
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If you’re thinking of trading in a new vehicle or adding a new car to your family’s lineup, there’s an important month to do your shopping – the month of May.
May is ideal, according to U.S. News & World Report, because that’s when the winter and spring auto shows have ended and new vehicles that were previously on display come to dealer showrooms. As such, dealers need to get rid of “old” stock and offer deep discounts to interested buyers who might not mind last year’s model. The end of May is also key, as dealers often offer Summer Memorial Day deals.
The end of the year – October through December – can also be a good time to do your car shopping. October sees new car models hitting showrooms and dealers looking to unload their existing inventory, while November sticks to Black Friday deals, including cars. In addition, December is a time when sellers are trying to meet their year-end sales targets and may be more willing to offer bargains to meet their benchmark.
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As you prepare to buy new wheels, check out the GOBankingRates guide to the dos and don’ts of buying a car.