2022 has been an interesting year for the automotive industry. new car sticker prices were sent skyrocketing due to shortages of chips and supplies needed to build vehicles. Indeed, prices rose 6.3% in 2022, according to JP Morgan. This clash of stickers resulted in a huge increase in used car inquiryprices there also increased by 42.5% in September.
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There is, however, good news on the horizon in 2023. JP Morgan estimates that prices for new and used vehicles should fall as supply chain problems ease and inflation is on the point of continuing to decline. According to the financial company, prices for new vehicles are expected to fall by 2.5 to 5%, while used cars could fall by 10 to 20%.
If you think of trade of for a new vehicle or to add a new car to your family’s lineup, there is a key month to shop: May.
According to US News & World Report, the month of May is ideal because it’s when the winter and spring seasons of auto shows have come to a halt and new vehicles previously on display arrive in the showrooms of the dealers. As such, dealers must shed “old” inventory and offer deep discounts to interested buyers who may not care about last year’s model. The end of May is also critical, as dealers often offer Memorial Day deals before the summer.
The end of the year – from October to December – can also be a good time to do your car shopping. October is when new vehicle models head to showrooms and dealers want to unload existing inventory, while November locks in on Black Friday deals, including automobiles. Additionally, December is a time when sellers are trying to hit their year-end sales targets and may be more willing to offer bargains to hit their benchmark.
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As you prepare to get some new wheels, check out GOBankingRates’ guide to the do’s and don’ts when buying a car.
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