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| Used Car prices could drop 20% this year. Here's where to expect the best deals first. |
| 2023-02-02 |
| [Bus Insider] Right now, supply chain crises are easing, bringing more inventory to dealership lots, while demand is stabilizing. As a result, JPMorgan says, used car prices could fall by as much as 20% in 2023, and new car prices could drop by 5%. But shoppers will still need to hunt to find a deal. Industry car-buying experts shared a few tips for what segments and brands may offer the best — and earliest — deals in 2023. (Hope you like minivans!) BUY DOMESTIC Brands like Tesla, Volkswagen, and BMW are generally more expensive now than in the past, said Brian Moody, executive editor of Kelley Blue Book. But some of their competitors have backed off jacked-up prices. "Looking for something like General Motors or maybe Hyundai, Mazda, Buick — some of those still have slight price increases, but just not as dramatic as some of the other ones," he said. Buicks, for example, are selling for roughly 2% below MSRP, Moody said. TrueCar industry analyst Zack Krelle agreed, noting that domestic brands have had more success building up inventory. "There are possibly some opportunities on the domestic brand side where they have slightly more inventory than some of the import brands," Krelle said. "The domestic brands have a 30-, 40-day supply, which is still very, very low compared to historic levels." STAY AWAY FROM SUVS Not only does brand matter, but the type of vehicle a car-buyer is looking for does, too. "There are some deals out there, if you happen to want a vehicle that is maybe lower in demand or if you're in a region that that particular vehicle doesn't sell as well as others," Krelle said. Secondhand pickup trucks, minivans, convertibles, and coupes were all trading at below the average for used cars as of November, according to Karl Brauer, executive analyst at the car search engine iSeeCars.com. "The biggest, fastest drop in prices in returning toward normal, pre-pandemic prices would probably be in those segments," Brauer said. More desirable SUVs will follow later on. Pickup trucks, though popular in general, don't have great fuel economy, so prices have softened amid higher-than-normal gas prices, Brauer said. Coupes and convertibles are "fun cars" that shoppers stay away from when they're worried about inflation and economic turmoil. Small cars, which haven't been historically sought-after and which may seem like an obvious road to a good deal, are now in high demand because of their relatively low purchase price and good gas mileage, experts say. Brauer expects that trend to continue into next year. The pandemic may have turned the car market on its head. But the basic laws of supply and demand still hold true. "Generally speaking, if you want to save money, I wouldn't be looking for the same thing everybody else is looking for," Moody said. |
| Posted by:Besoeker |
| #17 Got a Hertz at Houston airport a couple months ago. FLA tags. Opened the door and the mold/flood funk came rolling out. Several little green tree air fresheners in place. Rejected it hot another FLA car w/ no issues. Suspect fleet operator moved the cars, some before their unscheduled dive test. Would not be surprised to see them retitled in no flood/hurricane storm surge state for easier disposal. |
| Posted by: USN, Ret. 2023-02-02 16:43 |
| #16 Watch out for flood damaged vehicles from CA and the South. |
| Posted by: Angstrom 2023-02-02 15:31 |
| #15 One of my barber's customers was service manager at an MB dealership. He said they haven't built a decent car since 1972. |
| Posted by: M. Murcek 2023-02-02 13:25 |
| #14 Recent story about a guy bought an Escalade V fir $150K. Refinanced a few months later, GM froze his warranty for flipping car in violation of signing a no-flip statement. The geniuses at GM hadnt considered a refi; as of story publication, car is still at dealer, no work being done, in excess of 10 days. No word if that schmuk has lawyered up, but i would. Oh wait, GM hasnt built a worthwhile car since 1968. |
| Posted by: USN, Ret. 2023-02-02 13:22 |
| #13 My VW Bug. |
| Posted by: Skidmark 2023-02-02 13:05 |
| #12 If I had the time and money, I'd make a video about a car that would run after an EMP because it used non electric ignition. |
| Posted by: M. Murcek 2023-02-02 12:54 |
| #11 What, no all-electric car (sarc)? |
| Posted by: JohnQC 2023-02-02 12:40 |
| #10 I never got tired of watching Graveyard Carz. |
| Posted by: M. Murcek 2023-02-02 10:09 |
| #9 Owned a few Dodge cars. Highly underrated....in my opinion. Had strong transmissions, unlike today's Generic Motor products. |
| Posted by: Besoeker 2023-02-02 10:07 |
| #8 I will be the dealership, which might be sort of schizophrenic. |
| Posted by: M. Murcek 2023-02-02 10:04 |
| #7 I think the crate motors have done away with those huge resistors, B. But I have replaced my share of them, so I get you. |
| Posted by: M. Murcek 2023-02-02 10:03 |
| #6 Oh, LED lights for sure. And to be real, there will be a computer, but it will be mine with my software on it. No link to anybody. It's Florida, my AC will rock. |
| Posted by: M. Murcek 2023-02-02 10:02 |
| #5 /\ Don't forget to put a backup ballist resister in glovebox. |
| Posted by: Besoeker 2023-02-02 10:00 |
| #4 Crate motor. Richmond 6 speed. Disk brakes kit. Suspension kit. |
| Posted by: M. Murcek 2023-02-02 09:57 |
| #3 I'm going the other way. No computers. Looking for a clean 69-70 Coronet wagon. I'll rebuild / update it in the engine / transmission / brakes / suspension depts and otherwise rip wires out. |
| Posted by: M. Murcek 2023-02-02 09:56 |
| #2 When the annual repair costs on my 2004 F350 exceed the annual payments for a new truck, I'll consider it. |
| Posted by: Skidmark 2023-02-02 09:52 |
| #1 Maybe Good news...we have been looking into getting a used extended lenght Van, to make into a 4x4 camper. So we can do some remote WNC traveling before it requires Fed Gov. approval to leave your district or state. |
| Posted by: NN2N1 2023-02-02 08:38 |