Is Now a Good Time to Buy a Car?

With spring just around the corner, and income tax refunds rolling in, many people are thinking about replacing their old car with something new. There have been slight changes in the market, used car prices have been slowly decreasing over the last twelve months, while new car prices remain fairly high. The supply of new cars has increased for most manufacturers, which puts less demand on the used car market, but it is still lower than pre-COVID and the microchip shortage.

New car prices are expected to remain strong until mid-year, at which time manufacturers will most likely start offering discounts and incentives on most models. Used car prices may increase soon due to lack of supply from the busy spring tax season selling frenzy. Currently, higher loan interest rates are holding back used car sales. New car loan interest rates are lower than used car interest rates, which has always been the case, this has many people looking at new cars.

The bottom line: If you are looking to buy used, and can’t wait a year, buy sooner than later. If you are looking to buy new, wait for mid-year manufacturer incentives.