It may be easier to secure a loan for a new car than it is for a used car, and new car loans often come with lower interest rates. Used cars can be a good fit if you're on a budget and they generally cost less to insure; however, interest rates for used car loans are often higher than for new car loans.
The main disadvantage of buying a new car versus a used one is that a new car costs more. On top of that, it also loses a significant portion of its value once driven off the lot.
For most buyers in 2024, new car deals are more sensible due to lower financing costs and attractive incentives. Used car prices are declining but remain high, affected by the pandemic's long-term impact on production.
New cars might have a better warranty
New cars are less likely to break down than used ones and most new cars come with a factory warranty. Most new car warranties are bumper-to-bumper warranties, meaning most common repair costs are covered. You may also get free roadside assistance with your purchase.
The best way to save money is to buy used. A new car loses almost half its value in the first five years, so go for one that's a few years old yet still has contemporary safety features and many useful years ahead of it. Buying used also means a nicer car for the money than possible if buying new.
Best month - December has consistently scored high on both frequency and size of discounts, making it the best month of the year to buy a car. Holidays - Holidays are also good times to land a deal. You can score big with Black Friday deals, Christmas, or New Year's Eve.
What is considered high mileage on a car? Often, 100,000 miles is considered a cut-off point for used cars because older vehicles often start requiring more expensive and frequent maintenance when mileage exceeds 100,000.
Lexus and Toyota took the top spots for brand reliability this year, followed by Mini, Acura, Honda, and Subaru. And while people are buying more EVs, CR's members experienced 79% more problems with them compared to gas-powered cars.
Conclusion: Is 2023 a Good Time To Buy a Car? Considering vehicle prices are still inflated and loan rates may be on the rise, it's not the best time to buy a car. However, auto prices may continue to level off during the rest of the year, which would be a good sign for car buyers.
The end of the calendar year — specifically October, November and December — is typically one of the best times for car shoppers to get deals on vehicles. Cars sold during this time usually come with higher discounts and incentives than those sold during other times of the year.
McBride shares that while the high-rate environment will persist, rates will ease for most borrowers in 2024. Increased competition between lenders may help drivers secure a good rate. However, he warns, “don't expect auto loan rates to fall enough to offset the increases we've seen over the past couple of years.”
Kelley Blue Book analysts expect 2024 to be a stable, predictable year for car shoppers, barring any unexpected disruptions to global trade.
Improvements in the supply chain ought to bolster inventory, while interest rate cuts are on the horizon. "It's going to be a much better time for a consumer to buy a car in 2024 versus this year," said Paul Waatti, an industry analyst at market research firm AutoPacific.
Negotiate remotely first
“The best way to really get a deal has always been to contact dealers beforehand, before you just step on the lot,” he says. Once you get a price from one dealership, then, you can shop it around by contacting other dealers to see if they can meet the price.
A car with over 100,000 miles on the clock is going to start costing more to run each year. There are exceptions, of course, and much will depend on how the car has been maintained and the kind of driving you do, but when you hit 100,000 miles it's usually time to think of a change.
In general, it's recommended to spend no more than 10% to 15% of your monthly take-home income on your car payment, and no more than 20% on your total vehicle expenses, including insurance and registration. Read on to learn how you can determine how much car you can afford based on your financial situation.
In most cases, you'll still need to negotiate the value of your trade, the cost of financing and the price of any add-ons. If a car is in high demand, a dealership can charge far more than the sticker price.
If you're looking for a used car deal this year, understanding the ins and outs of today's changing used car market is key to saving more. In 2023, car buyers who are empowered with knowledge and negotiation know-how will save the most money. Those who are caught off guard are destined to overpay.
If you can be flexible on make, model, and features, the more options you'll have in a market where supply and inventory remain somewhat constrained. Be willing to do a bit of research on market value and price trends so you're better equipped to negotiate and make a reasonable deal given today's market conditions.
According to a recent study by Consumer Reports, Toyota and Lexus were the most reliable vehicles in 2022. After Japanese cars, BMW was ranked third, while Mercedes' reliability was rated the lowest.
Lexus and Toyota took the top spots for brand reliability, followed by Mini, Acura, Honda and Subaru. While EVs are growing in popularity, Consumer Reports' members experienced 79% more problems with their EVs compared to gas-powered cars.
Lexus and Toyota took the top spots for brand reliability, followed by Mini, Acura, Honda, and Subaru. And while EVs are growing in popularity, CR's members experience 79 percent MORE problems with their EVs compared to gas-powered cars.
A car that is ten years old might be perfectly fine for your needs, but chances are if you are looking at a car that is over 20 years old, you will find more problems than it's worth.
Minor things, if the rest of the car is still functioning well, I would say yes. If anything major goes wrong, like a transmission, or an engine, probably not. I would continue to do the regular maintenance as necessary.
We suggest you consider a 4- to 6-year-old vehicle with less than 50,000 miles. But it's essential to consider how an owner drove the car, whether city, highway, or a mix of miles, and how well the driver cared for the car.