Car prices have risen rapidly over the past two to three years. Factors such as the coronavirus (COVID-19) pandemic and have led to an increase in prices. However, production has improved as we head into 2023 and chip supply issues have eased somewhat. However, many people are wondering if this is enough to drive SUV prices down anytime soon.
might have some insight. Here’s more on SUV prices and whether their prices can go down in 2023.
According to one report, this forced Americans to pay an average of $45,622 for new vehicles in September 2022, an increase of $3,462 from previous years. This has also fueled the demand for used cars, driving up their prices.
Inflationary pressure also had a significant impact on the growth of SUV vehicles in 2022. This resulted in an average price increase of 42.5% from February 2020 to September 2022.
Reasons why SUV prices may fall in the next few years
Until the end of 2022, SUV prices have remained at record highs, but as inflationary pressure starts to ease, there are chances these prices will fall. indicates that global supply chain issues are also easing somewhat, particularly with the adoption of retrofitting, rework and reshoring, as a way to address chip shortages.
According to Consumer Reports, interest rates could go up as one of the measures to tackle inflation. Therefore, car loans and leases will be more expensive. Buying a new car with a lower interest rate would be cheaper than buying a used vehicle.
This settles the debate about whether to do it in terms of the effect of inflation on them. This and the possibility of a recession in the first half of this year would cause demand to drop, which could eventually translate into lower prices for new vehicles. However, even if there is a possibility that prices will drop slightly, there is no guarantee that things will return to normal, as they did during the pre-covid era.
Some manufacturers have even taken drastic measures to deal with inflation. For example, Ford plans to reduce dealer offerings by 20 percent and adopt factory orders from its consumers. Honda also wants to reduce overheads and normalize its inventory. These measures can lower prices, but there is no guarantee that they will be sustainable over the course of the year.
So when is the best time to buy a vehicle for less?
There is no set period when that is possible, especially with the possibility of having a recession that could continue into the second or third quarter of 2023. Predicting how automakers will respond to the looming recession is also difficult. However, if there is a chance that supply will outstrip demand, better deals could emerge.
However, the best time to get your SUV at a reasonable price is to avoid a dealer markup and try to get your SUV at MSR or . Some ways to buy your SUV on MSRP include researching add-ons, finance markups, asking for a discount, and waiting a while before buying the latest model car.
