Car Market in 2023

16 comments

• TheSingularity

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  2 years ago

  Looking at buying something in the 30,000 range. No way would I ever do a car payment anywhere near 1k. Not worth it
• twentyfive

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  2 years ago

  Wait a little while longer, if there is a slowdown, the auto manufacturers are flush with cash, they'll start offering incentives like rebates and zero percent financing, it will happen, it's just part of the normal business cycle.
• Muddy

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  2 years ago

  One thing, I would be a cash buyer. Otherwise I could hear Dave Ramsey already screaming.
• shailynn

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  2 years ago

  Here’s a great article I read last night that reflects what you’re saying.
  
  https://www.vice.com/en/article/m7bqx3/c…
  
  
  To put in perspective, I was looking at a car in 2020 (right before COVID started) it was a 2018 model. I didn’t buy because I didn’t need it. When COVID started I thought “am I going to lose my job?” “What’s going to happen to the economy?” “Do I want a car payment if the economy is going to shit and I won’t even be able to go anywhere?”
  
  So that 2018 model car is really 6 years old now. STILL retailing for more than it was in 2020 with similar mileage.
  
  Read the article I posted - they talk about no tax season rush this year and dealers are still struggling with inventory and are paying significant markups themselves now too to acquire preowned inventory.
  
  Lastly - I almost bought a SUV last month but the dealer in New Jersey has a $3,000 buyers fee attached to the SUV that I was made aware of at the last moment. I said “no thanks.”
• twentyfive

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  2 years ago

  @Muddy
  If you're buying automobiles with cash you're losing money, never buy a depreciating asset with current dollars, and now with inflation that becomes an even more important rule of growing wealth.
• shadowcat

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  2 years ago

  I have a 2018 Mustang GT with 32k miles on it. I love it and constantly get compliments on the color. I am getting flooded with offers from dealers to buy it for cash. Even my local Ford dealer has phoned and emailed me. I'm 81 years old and in decent health for my age. So my present car should last me the rest of my life.
  
  But I have that new car fever. The next generation of Mustangs is coming out this summer and I am going to take a look. I don't need another 25HP(new ones are 485) and I'm not wild about the colors but the urge won't go away. When the news ones are available, I will talk to my local dealer. If I can get what I want for my trade in plus about $20k, I'll probably go for it and pay cash for $20K. I need something other than strippers to spend my cash on. My kids tell me to go for it.
• Longball300

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  2 years ago

  ^ 25 is correct.
• shailynn

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  2 years ago

  Would someone make sense of all of this? Lol
  
  Credit card debt all time high
  
  1,000 month car payments for the average American becoming the new norm
  
  Wages not keeping up with inflation
  
  But
  
  Jobs still aplenty (at least in the areas I travel to)
  
  Home values still holding strong almost everywhere in the US
  
  Stocks have taken a beating but have not crashed
  
  
• Longball300

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  2 years ago

  I got a deal in early 2021 when inventories were still OK and used prices were soaring. Got a cash offer from CARMAX for $7K over what I owed on my 2020 Grand Cherokee at just 1 yr + into my lease. Took that written offer to my usual Jeep Dealership who knows me and told the manager to to come within a couple grand and work me a deal on a 2021 GC and a check for the overage. Walked out in a new Jeep with a check for $2K and the same payment. Got ~ 2 years left on that.... have to wait and see how inventories, rates and the value of my current GC is and figure things out then.
• Longball300

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  2 years ago

  Jobs a plenty because there are no people to work; all those folks who were working just to work and realized they could retire OK or only needed one household income.
• Mate27

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  2 years ago

  If yiu can’t wait and have to buy, expect to pay the premium. It is noted used car prices have dropped somewhat precipitously the last 6 months, almost up to 20% for some models. It’s not what you’re wanting, except it is doable to purchase a 2-3 year old vehicle at an acceptable price. Leases are starting to come back to market over the next few years since more or funding they can’t keep them as long as they couldn’t afford to.
• captainfun

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  2 years ago

  I have been casually looking at cars. New car inventory is coming back. The dealerships didnt struggle a ton during COVID since they were making bank per unit. Near me I think prices are negotiable once again if you want new. Used is negotiable too. As a general rule if you don’t like the deal, walk. Also if buying with cash you disclose that once the ‘out the door’ price is already a lock, no sooner.
• rickdugan

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  2 years ago

  I'm still paying on a 0% financing deal on a nice SUV only a few years old, so I feel like a pig in shit. But if I get bored with my ride after I pay it off and interest rates are still elevated, I'll trade it in and pay the difference for a new car in cash.
  
  But with all that said, the markets will adjust as demand dwindles. I don't agree with 25 that 0% financing will ever come back while the Fed Funds Rate is this high, but prices will have to adjust to make cars affordable to the mass market. The laws of supply and demand don't go away just because interest rates are up and inflation is high.
• mark94

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  2 years ago

  I’m probably going to buy a new hybrid SUV in the next couple weeks. There’s enough inventory that list price is MSRP. I’ll pay cash and get the, still well equipped, base model. I always buy the base model of a quality vehicle. I find that gives the most bang for the buck.
• mark94

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  2 years ago

  Home prices have dropped significantly in the markets that saw the most appreciation, like Phoenix, Austin, and Boise. But, it’s a game of chicken. Homeowners don’t want to give up their 3% mortgages and buyers are waiting for even lower prices. Who will blink first ?
• twentyfive

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  2 years ago

  @Rick
  The interest rate in the automobile industry is purely a function of demand, there’s always a few models that just don’t sell for one reason or another, the marketing department of most automotive manufacturers will do what’s necessary to move overstock from inventory it it needs rebates or reduced financing the don’t really care, the longer product stays on a dealers lot the lesser the profit will be, so sure we’ll see zero finance options again, maybe not in the same form as in the past, but it’s just one of many tools marketing people use to move products