So how bad of a time is it to buy a New car?
My car shopping market score is 35 out of 100. Zero is the worst market to consider buying a vehicle, and 100 is the absolute best. It’s trending in the right direction, and I expect it to improve throughout the year. It is better than 35 because specific scenarios make it an excellent time to purchase. So make sure you find the one that matches your current vehicle situation to see what strategy is for you.
POOR time to purchase 0-20
AVERAGE time to purchase 20-70
GOOD time to purchase 60-90
EXCELLENT time to purchase 90-100
In the past couple of years, I have been asked whether it is an excellent time to get a new car. So I have set out to answer this the best I can based on all the information I have and see every day working in the business.
As we have come out of the pandemic, the past couple of years have been some of the most challenging as a consumer and working in the industry, as I have seen in the 30-plus years I have been in the automobile business.
Only buy if you have to, except if you…
Only buy a new vehicle if you have to the right now! So there are better times to buy a new car. Inventories are re, turning and dealers will have more and more vehicles to sell in the next several months. This means the incentives WILL improve as we move through 2023. However, if you have to because of circumstances, like your car was totaled or died, and it is not worth the repair cost, you may have a new driver and need to add to the fleet at home—current Cox automotive New-vehicle affordability report.
Here is my advice if you have to get a car now.
Look for models with selection, or several choices, available on the ground. When the dealer’s inventories increase, they will stop earning more cars from the factory. Thus, you will be able to ask more significant discount than you would if there were no available. These models will also likely have factory incentives such as special interest rates, rebates, or lease incentives.
Stay away from late-model used cars if…
With the shortage of pre-owned or used cars, we have seen a LOT of used cars with prices similar to or even more than new ones! More on whether it is an excellent time to look at getting a used vehicle here… but to give you a quick answer, most of the used market is over-priced, and values ARE falling. Only consider a pre-owned one if it is the perfect one for you AND is priced well below what the comparable new one is to buy. See the currently used market report from Cox Automotive.
I recommend a used vehicle, or at least a one to two-year-old one, as a consideration. However, with the inflated values and demand on the used market, a new one is often the better choice. At least for right now. ..