Will new car prices come down in 2023?

Yes, new car prices started coming down in 2023, though slowly, with average transaction prices falling from their late-2022 peaks, but they remained higher than pre-pandemic levels due to automakers keeping inventory tight for higher profits. The trend in 2023 was a gradual easing, with increasing incentives and a slight dip in overall prices as chip shortages resolved and inventory improved, moving towards a buyer's market but without a drastic drop.

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.

Will new vehicle prices ever go down?

New car prices aren't expected to crash back to pre-pandemic levels soon, but they are stabilizing and seeing modest drops in average transaction prices due to higher inventory and more incentives, though overall sticker prices remain elevated by inflation, tariffs, and demand for pricier models. Expect continued shifts: more buyer leverage with discounts, but high base costs mean cheaper cars might mean lower-trim models, with potential slight increases in MSRPs for 2026 due to rising costs and tariffs, making late 2025 (like year-end) a good time to find deals. 

Car Prices in 2026: The Truth No One’s Telling You!

What's the worst month for car sales?

Generally, January is the slowest month for car sales due to post-holiday spending, cold weather, and consumers waiting for tax refunds, with February also being slow as winter continues and people recover financially. While December is busy with holiday deals, the lull in January and early February follows, with sales picking up as tax season brings more buyers in March/April, notes sources like Cox Automotive, Carketa, and ecarstrade.com.
 

How much should I spend on a car if I make $60,000?

On a $60,000 salary, you can generally afford a car in the $20,000 to $30,000 range, with total monthly car expenses (payment, insurance, gas, maintenance) ideally staying under 15-20% of your take-home pay, which might be around $300-$450 for just the payment, though some say up to 35% of gross income for the total vehicle price. Key factors are your credit score, down payment (aim for 20% to avoid PMI and reduce interest), loan term (shorter is better), and other debts. 

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 Dave Ramsey's rule on car buying?

Dave Ramsey's core car-buying rule is to buy used, pay cash, and keep total vehicle value under half your annual income, avoiding new cars unless you're a millionaire, as they depreciate rapidly. He emphasizes avoiding debt, focusing on reliable used cars (not necessarily junkers), and using the 20/4/10 rule for loans20/4/10 rule for loans if financing, but cash is king.
 

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)

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.”

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 ...

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.

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.)

What is the rule of 20 4 10?

The 20/4/10 rule is a car financing guideline suggesting you make a 20% down payment, finance the car for no more than 4 years (48 months), and keep your total monthly vehicle expenses (payment, insurance, gas, maintenance) to under 10% of your gross monthly income, helping you avoid overspending and staying out of "underwater" car loan situations. 

How to not get screwed by a car dealership?

Make sure that the Total Cash Price on the written contract matches the price that you were told. If the prices are different, you may be the victim of fraud. If the dealership refuses to honor the representations made to you by the salesperson, refuse to sign the contract and walk away from the dealership.

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.

What hidden car costs should I consider?

Beyond the monthly payment, you'll also face years of variable expenses like car insurance, gas, maintenance and taxes, which can spike without warning. By considering these costs before buying a new or used car, you'll be better prepared for the financial ups and downs of hidden car ownership costs.

What credit score do I need for a $60,000 car loan?

According to Experian, a target credit score of 661 or above should get you a new-car loan with an annual percentage rate of around 6.51% or better, or a used-car loan around 9.65% or lower. Superprime: 781-850. 4.88%.

What car can I afford making 100k a year?

With a $100k salary, you can likely afford a car in the $35,000 to $50,000 range, but it depends on your budget, down payment, and other expenses; aim for total monthly car costs (payment, insurance, gas, maintenance) under 10-20% of your after-tax income, or ideally, keep the vehicle's total value under 50% of your gross income to stay financially healthy, suggests experts like Dave Ramsey, NerdWallet, and Kelley Blue Book.