2022 has been an interesting year for the automotive industry. The price of new car stickers has skyrocketed due to a shortage of chips and supplies of key materials needed to build automobiles. In fact, according to JP Morgan, prices will rise by 6.3% in 2022. That sticker shock led to a massive increase in demand for used cars, with prices also rising 42.5% as of September.
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However, 2023 has good news ahead. JP Morgan expects both new and used car prices to fall as supply chain problems ease and inflation is poised to continue to ease. New car prices may fall by 2.5-5%, while used car prices may fall by 10-20%, according to financial firms.
If you're looking to upgrade to a new vehicle or add a new vehicle to your family lineup, there's a big month to shop for - May.
According to US News & World Report, the month of May is ideal as the winter and spring auto show seasons come to an end, and new cars that have been on display before are hitting dealer showroom floors. So dealers should get rid of "old" inventory and offer deep discounts to buyers who don't mind last year's model. The end of May is also important, as dealers often offer Memorial Day deals well in advance of the summer.
The end of the year (October to December) is also a good time to shop for cars. October is the time when new vehicle models hit the showroom floors and dealers want to unload existing inventory, and November is the time to catch up on Black His Friday deals, which include cars. Additionally, December is the time when salespeople are trying to hit their year-end sales goals, and they may be willing to offer bargains to meet their benchmarks.
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As you prepare to buy new wheels, check out our GOBankingRates guide to find out the do's and don'ts of buying a car.
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This article was originally published on GOBankingRates.com: Best Months to Buy a Car in 2023