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when will new car prices drop ?

When Will New Car Prices Drop?

The automotive industry has been dealing with an eventful few years, watching as new car prices have climbed higher due to several factors, including disarranged supply chains, semiconductor shortages, and a changing in consumer preferences. With the current market trends showing a degree of stability, many are beginning to ask: when will new car prices drop back to more manageable levels?

According to a recent report from J.P. Morgan researchers, new car prices are on track to fall back by approximately 2.5% to 5% in 2023. In parallel, used car prices are anticipated to decrease by 10% to 20% within the same time frame. These forecasts are based on current market trends, such as the ongoing semiconductor shortage, slowing sales, and a gradual increase in new car production.

Kelley Blue Book, another prominent industry authority, is also forecasting a reduction in used car prices, some even suggesting that we could witness a drop of up to 30% in the coming months. This potential downturn is partly a consequence of the recent surge in used car sales which has led to a market saturation, ultimately driving prices down.

### What Does This Mean for Car Buyers?

If you’re considering buying a car, this information suggests that prices might well be set to decrease gradually over the coming year. However, it’s crucial to bear in mind that these price drops might not be so significant as to justify dragging your heels on your next car purchase, particularly if you have an urgent need for a vehicle.

Until then, there are steps car buyers can take to secure a better deal when purchasing a new or used vehicle. Conduct thorough market research, knowing the realistic value of the car, and being prepared to walk away if you don’t get the deal you’re aiming for can make a considerable difference in the final price.

### Concluding Thoughts: Watch and Wait…

If you are flexible with your purchasing plans, it might just be worth waiting a while longer to take advantage of potential price reductions. However, make no mistake, there’s no guarantee on when or by how much prices will drop. If your transportation needs are urgent, it might be prudent to purchase now and find ways to offset any immediate financial burden with financing and insurance options.

Stay tuned for more updates on the car market, and keep an eye open for those discounts that might materialize in the not-so-distant future.

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**Sources:**

* J.P. Morgan Research: When Will Car Prices Drop?
* Forbes Wheels: Car Market Outlook: What To Expect In 2023
* USA Today: Will car prices drop in 2023? What to expect as car demand stabilizes
* Investopedia: When Will Car Prices Drop in 2022 and 2023?
* Cars.com: Used-Car Prices Are Finally Dropping; Here’s What to Expect in 2023
* The Millionaire: Will Car Prices Drop in 2022?

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