While car prices might have come down some for the used car market industry insiders have still suggested that prices are perhaps grossly inflated still, and the average price for a new car is out of reach for many as well.
The pandemic and economic shutdown also impacted the car market greatly, especially the second hand car market and the usual supply that they might be dealing with.
The prices coming down in some areas might prompt more to go out and buy but for right now with inflation causing a lot of stress for many individuals and families it probably isn't a top priority for them to go and load up on new car debt.
The demand for new vehicle sales is understandably going to slow when inflation is pushing things up in other areas. Though not every area is seeing the same situation in the car industry, some regions have seen sales jump in other parts of the world.
Those interest rates increasing are going to make the cars more unaffordable with the extra cost that they add on, nowadays the average American car is getting a lot older as more people hold onto what they are familiar with instead of looking to trade in and trade up.
The EV market has continued to grow as well, and this market is expected to surge next year too as demand expands for this transportation preference around the world.
Last year it was seen that Americans had purchased a record number of used cars and the average used car was going for around $27k according to some estimates. A large portion of Americans would also prefer to consider opting to buy a used car for when thinking about buying a new car, according to past surveys on the topic. With the price of cars said to be growing faster than earnings this means that for many this product could easily creep further out of reach in terms of affordability.
Pics:
pixabay
Sources:
https://www.cnbc.com/2022/12/07/used-vehicle-demand-and-prices-continue-to-decline-from-record-highs.html
https://www.jacksonville.com/story/business/2022/12/16/car-prices-hit-record-highs-in-2022-interest-rates/10662301002/
