Is 2023 the time to Buy a Used Car

2023 might just be the time for you to buy that used car, but there is more at play than you might think. Over the past few years, used cars have been at an all-time high. Only recently have the price of used cars begun to decline. Does this mean consumers should start buying?

The used car market in America is a booming, highly-reliable system. In early 2020, back when Covid-19 affected the car market as a whole, used cars began rising in price. A number of factors were responsible for this shift, but it was mainly the lack of inventory of new cars, which was caused by the lack of inventory of new-car parts, including the microchip shortage. As a result, demand for used cars skyrocketed, and the price for said cars followed that demand curve accordingly. Now, in 2023, as the overall inventory of new cars is almost all but normalized, used cars have begun to drop in price.

Prices are falling, but does this mean consumers should jump ship and buy used cars? Before you make any decisions, keep reading to learn more about what is happening this year with used car trends.

What is Happening?

Used cars are dropping in price. This is good news, right? Yes, but that doesn’t mean you should act right away. It was at the end of 2022, in late October, that experts began seeing a positive shift in the price for used cars. That shift has been on a steady decline up until now.

This is an indicator that demand for used cars is falling as well, due to the recovering inventory of new cars worldwide, and the price for new cars is expected to fall, too. How much? Not much at all, actually. New car prices are expected to drop by 2.5%-5%. On the flip side, used cars are expected to drop by 10%-20% in 2023. This is a massive improvement, and consumers should keep a keen eye on prices as the year goes on.

Should You Buy Right Now?

It’s true, prices are lower than they have been in a long time, which is a good thing for any buyer, but it does not mean you should buy right now. Some might like you to think that you have to buy a car right now, but that just isn’t the case. It’s the beginning of the year and prices are expected to fall more throughout the year.

It is a bit of a catch-22. If you are someone who needs a car right this second, or if there is a particular car you have your eye on, then maybe you should want to buy it right now. If saving money is your objective, then you should wait because used cars are only going to get cheaper and cheaper. Demand and price for used cars are going to keep going down, which is a good thing. But how long can you hold out?