Will 2023 be a better time to buy a new car?

In 2023, the car market was a mixed bag: better for buyers in terms of improving inventory but still challenging due to high prices and rising interest rates, making it a transitional year where waiting might have secured better deals by year-end as supply increased. While overall conditions improved from the pandemic lows, you faced a tougher choice between high sticker prices/rates or potentially better discounts on outgoing models as inventory grew.

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). 

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.

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.

Should I Buy a NEW or USED Car? (Updated 2025)

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.

Why does Suze Orman say not to lease a car?

That's according to financial expert and bestselling author of "Women and Money" Suze Orman. "I personally think you should never, ever ever ever, lease a car, do you hear me?" she tells CNBC Make It. That's because when you lease, you're pouring in money each month with nothing to show for it at the end of the day.

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 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 does Suze Orman say about buying a new car?

Cars reportedly lose 20% of their value in the first year of ownership and retain just 40% of their original value after five years. Clearly, that is not a good investment. “Your goal should be to buy the least expensive car. Period,” said Orman.

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 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 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 is the Dave Ramsey rule on new cars?

Dave Ramsey's main car rule is to pay cash for a reliable used car, avoiding new cars and financing because they're depreciating assets that trap you in debt; unless you're a millionaire, buy a good quality used car and never let your total vehicle value exceed half your annual income. He stresses buying what you can afford outright, as new cars lose value rapidly.
 

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)

How much is the monthly payment on a $70,000 car loan?

A $70k car payment varies significantly but expect roughly $800 - $1,200+ monthly for a loan (60-72 mos, 7-10% APR, decent down payment) or $700 - $1,200+ for a lease, depending heavily on your credit, down payment, loan term (length), and the specific interest/money factor. A larger down payment and shorter term lower the monthly cost, while a low credit score or long term raises it. 

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.)

Is it better to buy new or used with a loan?

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.

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.

How to win against a car salesman?

You'll need to know what places you are willing to compromise on going in and how much value each point has for you. Be willing to walk – if there isn't a successful end to negotiations, be prepared to walk away. Keep emotions in check – Stay calm and focused throughout the negotiating process.

How to deal with a dealer when buying a car?

So, let's explore some practical ways to help you negotiate like a professional at a used car dealership.

1. Research the Car's Market Value. ...
2. Set a Clear Budget. ...
3. Shop Around First. ...
4. Visit During Strategic Times. ...
5. Start with a Reasonable Offer. ...
6. Stay Calm and Respectful. ...
7. Focus on the Total Price. ...
8. Ask for the Out-the-Door Price.

What's the smartest way to pay for a car?

The best way to pay for a car balances affordability and cost, often meaning a mix of significant cash (down payment) and a small, short-term loan (e.g., 3-5 years) to build credit without excessive interest. Paying all cash avoids interest but can be a huge upfront cost, while paying all cash at a dealer might cost more than if you financed. Leasing offers lower monthly payments but you don't own the car. 

Why should you never put money down on a lease?

Risk of Losing Money: If your leased car is stolen or totaled early in the lease, your insurance company may cover the vehicle's value, but you might not get back the money you put down. This means you could lose thousands of dollars with no real financial benefit.

Do wealthy people buy or lease cars?

Wealthy people factor this into their decision-making. If you're planning to keep a car for more than six years, buying almost always makes more financial sense. But if you prefer driving newer cars with warranties and don't mind ongoing payments, leasing might fit your lifestyle better.