If you are considering buying a new or used vehicle right now, you may want to wait until 2023 at least because the market is seriously out of flux at the moment. A lot of brand-new cars are in short supply due to supply chain problems and a shortage of microchips, and the knock-on effect is that used vehicle prices are through the roof.
If the second half of 2022 continues to show more favorable conditions for buyers in the new and used car markets than in 2021 and the early part of 2022, then 2023 could be a great time to change your car.
Finding the right vehicle hasn’t been this difficult in a long time. Finding the car you want may seem impossible. And if you do find what you want, can you even afford the asking price at the moment? And will it be delivered in a reasonable timeframe if you are prepared to pay the asking price?
Why prices are high and supply is short
Supply chain issues, chip shortages, global manufacturing issues, and shifting economic policies have all contributed to the difficulty, but many motorists are questioning whether purchasing a vehicle is worth it at this time.
There is some encouraging evidence that some used car prices are finally dropping, but there’s no guarantee that they will remain low. The situation is constantly changing, and these alterations are not as consistent as consumers would like.
The main reason car prices have skyrocketed is that old, inexpensive cars (older model years with high mileage) are no longer as readily available as they once were. A lack of cheaper vehicles below the $5,000 mark and a potential jump in cheaper, lower-mileage cars may have skewed the average.
Good news on the horizon?
Although prices are forecast to continue rising, analysts at Kelley Blue Book hope that they will soon stabilize.
According to Kelley Blue Book, buying a car in the latter half of 2022 will be a better experience.
According to KBB, “waiting until the second half of 2022 to purchase a vehicle if you can afford to wait is looking better. The inventory, especially in the used market, is slowly recovering. Microchip shortages are expected to decrease by fall, according to many analysts.”
An increase in car sales in the second half of 2022 might indicate that buying a new or used car in 2023 is a smart move. If production increases, chip shortages are alleviated, availability of cars increases, and prices decrease, everything would be just fine.
That said, that’s the ideal situation.
High gas prices could lead to more efficient cars being produced
Higher gas prices may force automakers to produce a wider range of smaller, more economical vehicles. In spite of the fact that filling up some trucks and big SUVs now costs over $100, many families cannot afford to do so, it’s not sustainable.
Despite the fact that economical hybrid and electrical cars may be the answer in the future, there’s no assurance that they will ever become what most of us would consider inexpensive. Because firms are investing so more and more money in technology these days, hybrids and electric cars are now more expensive than ever.
Even so, the availability of slightly more reasonably priced small vehicles might ease demand for used cars, lowering prices and maintaining market stability across the board, making them more accessible. The problem with this is, however, that most people want SUVs and trucks these days and not smaller, more economical sedans and hatches.
Buy a car before selling your current one
The high cost of both new and used cars may seem frustrating, but it may be beneficial if you are considering downsizing. If you are going from a two-car family to one or are trading in your full-size SUV for a compact car, this may be the ideal market for you. Waiting until 2023 might be a mistake if you have something more pricey to sell or trade-in.
If you have a popular hybrid car, a fuel-efficient SUV, or another in-demand vehicle, you’re never going to get more for your vehicle than you will right now. A chip shortage might make it difficult to find what you want, so I’d recommend selling or trading your current vehicle for the most money possible now if you know you can get what you want or you’ve already secured it.
If you want more detailed assessments of why you should wait until 2023 to buy any new or used vehicle, check out these articles below: