Is 2023 a good time to buy a car?

In 2023, buying a car was a mixed bag: rising prices and high interest rates challenged affordability, but improving new car inventory started to shift conditions toward a buyer's market, with potential for increased dealer discounts and incentives by year-end, though overall affordability remained a hurdle. It wasn't a universally "good" time, but better than previous years for finding selection, with late 2023 (especially holidays like December) showing signs of returning to more normal, buyer-friendly deals as supply increased.

Is it better to buy a car now or wait until 2025?

You should buy a car now (late 2025) for deals on outgoing 2025 models, leveraging year-end incentives and better inventory, or wait until late 2025/early 2026 for aggressive 2026 model-year clearance, but be aware of potential 2026 model year price hikes and expiring EV tax credits by Sept 2025, making late 2025 a sweet spot. Waiting longer risks higher prices and potentially rising interest rates, though new inventory levels are improving. 

Is 2023 a good year to buy a car?

Are New Car Prices Increasing in 2023? Luckily, this is not the case. But don't expect to see a drastic price decrease in new cars. The price of new vehicles will drop by 2.5% to 5%, with pre-owned car price tags seeing even sharper declines, with rates expected to drop by 10% to 20% throughout the year.

What is the cheapest month to buy a new car?

The cheapest months to buy a new car are typically October, November, and especially December, due to year-end model clearances and salespeople/dealerships racing to meet annual quotas, with great deals also found at the end of the first quarter (March/June) and during holiday weekends like Memorial Day. Waiting until the final days of the year offers the most significant discounts as dealers clear out outgoing model years (e.g., 2025s to make way for 2026s). 

Why Dave Ramsey says not to finance a car?

You open yourself up to other risk such as a job loss or other life event impacting your ability to make a car payment. There is the risk that the vehicle could get totaled and you owe more than the value. You could get gap insurance, but now you have to spend more money just to drive a car with payments.

The BEST Time to Buy a Car (From a Former Dealer)

What is the 8% rule when buying a car?

The 20/3/8 rule is a guideline that suggests you put 20% down on a car and repay the loan over three years. Applying the rule correctly will also require your monthly payment and car expenses be 8% or less of your income.

How much would a $32,000 car payment be?

A $32,000 car payment isn't a single monthly figure; it depends on your loan's interest rate and term, but expect roughly $600-$700 monthly for 60 months (5 years) at typical rates, or more for shorter terms/higher rates. For example, a $32k loan at 6% for 5 years costs about $619/month; at 4% for 60 months, it might be closer to $580-$600, while longer terms or higher rates (like 7-10% for prime borrowers) increase payments, say NerdWallet and Calculator.net show. 

What is the red flag rule for car dealers?

The Red Flags Rule (the Rule), enforced by the Federal Trade Commission (FTC), requires automobile dealers to develop and implement a written identity theft prevention program designed to identify, detect, and respond to warning signs—known as “red flags”—that indicate that a customer or potential customer could be ...

What time of year do dealerships offer incentives?

Quarter-End Sales (March, June, September, December)

Dealerships work to reach quarterly goals. Extra rebates and lower interest rates may be available. Shopping during these months can mean better offers on popular models.

What is the 20/4-10 rule for buying a car?

The 20/4/10 rule is a car buying guideline suggesting you make a 20% down payment, finance the car for 4 years (48 months) or less, and keep your total monthly transportation costs (payment, insurance, gas, maintenance) at or below 10% of your gross monthly income, helping prevent debt and staying within budget. It's a framework to avoid being "upside down" on a loan and overspending on a vehicle.
 

What is a red flag when buying a car?

Use your best judgment; if a car looks or feels wrong, don't buy it. Look out for excessive rust, a worn tailpipe, or illuminated dash lights. During your test drive, pay special attention to how the car handles and sounds. If something's off, ask the seller and double-check the title and history report.

What should a $30,000 car payment be?

For a $30,000 car, your monthly payment could range from around $500 to over $700, depending heavily on your down payment, loan term (e.g., 60 vs. 48 months), and interest rate (APR), with longer terms and higher rates increasing payments, while a larger down payment (like 20%) lowers them significantly. For example, with a $3k down payment, 5.8% rate, and 60 months, it's about $520; with a good rate on a 4-year loan, it could be $733. 

What's the slowest month for car dealerships?

Since January is the slowest month for sales, it is much slower for luxury cars to sell. Because of this, it may be more challenging for the most expensive ones to be taken out of your parking lot. To sell out the most expensive ones in your inventory, January is the best time to offer promotional deals to the buyers.

What not to say to a car salesman?

To avoid giving a car salesman leverage, don't say you need a car, "I love this car," or mention your low credit score; instead, focus negotiations on the total price (not monthly payments), keep your trade-in value secret (get a third-party appraisal), and don't reveal you're paying with cash, as dealers want to make money on financing. Be polite but firm, and act like you're ready to walk away to get the best deal. 

What credit score is needed for a $30,000 car?

To qualify for a $30,000 car loan, most lenders prefer to see a credit score of at least 660 to 700. That being said, your credit score is only one part of the equation. Lenders will also consider: Your debt-to-income ratio (how much you owe compared to how much you earn)

What is the 3000 rule for cars?

Use the 7.6-year benchmark, a $3,000 repair limit, and 150,000 miles to decide—keep a solid car to 10–12 years, or trade before big failures land.

What month is the cheapest to buy a car?

The cheapest months to buy a car are typically December, due to year-end sales goals, and January/February, when dealers clear out old models and face less foot traffic, with late summer (August/September) also being good for trade-ins and new inventory. Shopping at the end of the month or quarter (March, June, September, December) offers great deals as staff try to meet quotas, with December often providing peak holiday incentives and discounts. 

Is it better to finance through a bank or dealer?

It's often best to compare both, as dealers offer convenience and special rates while banks/credit unions might provide lower base rates, especially with good credit; dealers have access to many lenders, potentially beating your bank, but can mark up rates, so get pre-approved by a bank first to compare offers for the best deal and transparency. 

What are the most reliable car brands?

The most reliable car brands consistently include Lexus, Toyota, Honda, Mazda, and Subaru, with Lexus and Toyota often leading due to their luxury and mainstream models, respectively, while brands like Acura, Kia, Hyundai, and BMW also rank highly for dependability, especially with hybrids. These brands excel through proven engineering, fewer drastic redesigns, and refined hybrid systems, making them top choices for long-term value, according to sources like Consumer Reports and Kelley Blue Book. 

What is Dave Ramsey's rule on cars?

Dave Ramsey's core car rules emphasize paying cash, buying used, and limiting total vehicle value to half your annual income, avoiding new cars unless you're a millionaire due to rapid depreciation. He stresses buying reliable, older used cars, getting them inspected by a mechanic, and never taking on debt for depreciating assets like cars, trucks, or RVs, focusing on financial freedom over looking wealthy. 

How to win against a car salesman?

Car salespeople use various tactics to pressure buyers into purchasing vehicles they may not afford. Staying focused on the total cost of the car, interest rate and fees can help you avoid making a purchase you'll regret. Don't be afraid to walk away if the purchase doesn't feel right.

What is a red flag in a car dealership used for?

Used car red flag #1: A complicated history

Because a car's title can be forged, verify it with the appropriate state DMV before you finalize a purchase, especially if the vehicle was recently brought to your state and titled, or if the car's vehicle identification number (VIN) appears to have been tampered with.

Can I afford a 30k car making 50k a year?

Start With Your Gross Income

To get an idea of how much car you can afford, a good rule of thumb is to pay no more than 35% of your annual pre-tax income. So, if you make $50,000 before taxes per year, your car purchase price should not exceed $17,500.

Are Carmax prices out the door?

CarMax's sticker price is firm and not negotiable, but the total "out-the-door" (OTD) price includes mandatory taxes, title, and registration fees, plus optional extras (warranties, financing), which do add to the final cost beyond the listed price, so it's not fully OTD but you can get a close estimate and negotiate add-ons. You won't haggle the car's price, but you can negotiate financing, extended warranties, and sometimes service items like new tires/brakes.
 

Is a 60 or 72-month car loan better?

Better interest rate: A 60-month loan will typically have a lower interest rate than a 72-month loan because the risk for lenders isn't as high. (Lenders consider long-term loans to be riskier because the longer it takes to pay off the loan, the more opportunity exists for the loan to not be paid back in full.)