Is 2023 a good time to buy a new car?

2023 was a mixed bag for car buying: inventory improved, offering more choice and leading to better deals by late 2023, but high interest rates and elevated prices still made monthly payments expensive. It was a better time than the deep shortages of 2022, especially if you waited for year-end incentives and better selection, but affordability remained a challenge due to high financing costs and overall higher MSRPs than pre-pandemic, though some EV/hybrid prices started stabilizing.

Is it better to buy a 2023 or 2024 car?

If you can find the variant which you want and the color which you like. It's a big yes. By buying a 2023 model in 2024 you will be able to secure huge discounts from dealership. It makes more financial sense to do this. I know many folks who book...

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. 

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). 

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.

When Is The BEST Time To Buy a Car?

What not to say to a dealership when buying a car?

Let's look at some things to keep under your hat while you explore the lot.

• "I Don't Know Much About Cars"
• "My Current Car Is on Its Last Legs"
• "My Lease Is Almost Up"
• "I'm Going to Pay Cash!"
• "I Already Have a Car Loan Lined Up"
• "I Love This Car"
• "I've Never Bought a New Car Before"

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 is a red flag in a dealership?

The “Red Flags Rule” requires your dealership to develop and implement a written Identity Theft Prevention Program (ITPP) to detect, prevent, and mitigate identity theft. Your dealership's highest governing authority must approve the initial ITPP, and take responsibility for it.

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 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 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 ...

Why Dave Ramsey says not to finance a car?

“Cars, trucks, RVs, boats, and everything that has motors and wheels go down in value,” Ramsey wrote recently. “NEVER finance them, because they go down in value and you get stuck in them. Don't let debt trap you in something that's losing value every day. Save up, pay cash, and own it outright.”

Which car flips over the most?

High Center of Gravity

Vehicles that sit higher off the ground like SUVs, pickup trucks, and vans are more likely to roll over. Light trucks have a much higher rollover rate than sedans. Adding passengers or heavy cargo raises the center of gravity even more.

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 a maximum of 4 years (48 months), and keep your total monthly vehicle costs (payment, insurance, gas, maintenance) below 10% of your gross monthly income, preventing negative equity and budget strain. 

What car is the poor man's Ferrari?

The most common "poor man's Ferrari" is the Toyota MR2 (SW20 generation), nicknamed the "baby Ferrari" for its mid-engine layout, sleek styling reminiscent of Ferraris like the 308/348, and accessible price. Other cars sometimes called this include the Pontiac Fiero, Volvo P1800 (for its looks/GT feel), and even budget modern options like certain Hyundai Tiburons or the Ferrari California itself (as a more affordable entry).
 

Is it financially better to buy a new or used car?

Financially, buying a used car is almost always better due to lower purchase prices, less depreciation (especially in the first few years), and potentially lower insurance, though new cars offer better financing rates and warranties. However, some recent trends show nearly new used cars can cost nearly as much as new models, with used car loans having higher interest rates, making a new car sometimes more economical, especially with good deals or if keeping the car long-term, say some. 

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 is the four square trick at a car dealership?

The “4-Square” Tactic

One of the most common sales tactics used by dealerships is the 4-square worksheet. This worksheet is divided into four sections: purchase price, trade-in value, down payment, and monthly payments.

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 not to tell a car dealership?

At a car dealership, avoid saying things that reveal desperation or lack of knowledge, such as "I have to have this car today," "This is my dream car," or "I don't know much about cars"; focus negotiations on the total "out-the-door" price, not monthly payments; and don't reveal you have a trade-in or a pre-approved loan too early, as these details can be used against you, while telling them you're paying cash can hurt your leverage, say experts. 

What is the average interest rate on a car loan with an 800 credit score?

For an 800 credit score (Super Prime), expect average new car loan rates around 4.9% - 5.3% and used car rates near 7.1% - 7.4%, though rates vary by lender, loan term, and current economic conditions, with some top offers potentially even lower, especially for new cars. 

What does Carfax not tell you?

Carfax reports are valuable but incomplete; they don't show unreported accidents/damage, minor repairs done privately, most routine maintenance (oil changes, tire rotations), the quality of repairs, current mechanical issues, or how well the car was actually kept, relying solely on data from participating sources like police, insurance, and repair shops. If an event isn't reported to their network, it won't appear, making a pre-purchase inspection by a trusted mechanic essential. 

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.)

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

For a $30,000 car loan, a credit score of 660 or higher (Good to Excellent) gets you the best rates, but you can often get approved with a Fair score (around 600-660), though expect higher interest; scores below 600 (Subprime) are possible but come with significantly higher rates, potentially costing thousands more in interest, requiring larger down payments or a cosigner for better terms. 

How much would a $70,000 car payment be?

A $70,000 car payment varies significantly but expect roughly $1,100 to $1,800+ monthly for a loan, or $700-$1200+ for a lease, depending heavily on down payment, loan/lease term (e.g., 60-72 months), and your credit score (affecting interest rate or money factor). A 10-15% down payment and 60-month term are common, but a higher interest rate (like 8-10% APR) or shorter term increases payments, while a larger down payment reduces them.