New car prices have been trending lower for about a year due to increased vehicle production and elevated interest rates that have crimped demand. As a result, inventories are swelling at dealerships nationwide, with expectations for new and used vehicle prices to continue sliding into the spring season.
A recent Kelley Blue Book report shows new car prices in January were down 3.5% compared with the same month one year ago. The average new car sold was $47,401.
“Prices have been trending downward for roughly six months now as automakers are sweetening deals to keep the sales flowing,” Erin Keating, executive analyst for Cox Automotive, said in the report.
The downward pressure is mainly because new vehicle inventory has surged. As of January, it stood at 2.66 million units, a 49% jump in the past year, according to Cox data.
“With rates higher so far this year, the consumer has limited sense of urgency right now other than cash in hand,” Jonathan Smoke, chief economist at Cox, said in a separate report.
I’ll keep what I have and try to maintain it the best I can.
They have priced me out of the market. I can’t afford what they are asking.
Many who live here don’t make a 6 figure salary. Quality has also suffered as well.
No thanks!
My wife and I own two cars. One is over 25 years old, and the other is over 15 years old. We have plenty of money but don’t care about keeping up with the Jones’ so we’ll keep them both until the maintenance costs outweigh the expense of a new vehicle. Stop complaining and just live smartly and do the math.
10:44 the maintenance cost will never outweigh the cost of purchasing a new comparable car. Car payments are like a mortgage payment now. Keep what you have and take care of it.