Tech
Is 2023 The Year To Buy A New Car?
It’s a question many drivers ask themselves when considering whether or not to upgrade their car: is now the right time to consider buying a car? And with the economy in flux and interest rates uncertain, it can take time to determine if now is the right time. So, is 2023 the year to buy a new car? Let’s explore this topic further.
The Pros of Buying A New Car in 2023
In 2023, plenty of incentives will likely be available for those who buy a new car. Since manufacturers are eager to move products off the lot, they’ll offer great deals on new vehicles. This could mean anything from discounted financing options to cashback rewards and other incentives. Additionally, cars today are more reliable than ever, so you won’t have to worry about them breaking down or needing frequent repairs like older models.
The Cons of Buying A New Car in 2023
On the flip side, buying a new car in 2023 is only sometimes the best choice for everyone. Interest rates are currently at an all-time low thanks to federal stimulus packages and other economic initiatives, but these rates may begin to rise as soon as next year. If you don’t plan on taking advantage of 0% financing offers from dealerships or other special offers, you may pay more over time due to higher interest rates. Additionally, cars depreciate quickly—meaning that if you decide to resell it after a few years, you may not get back what you paid for it initially.
New to You
Consider buying a car that is new to you but a few years old. Used vehicles are only sometimes going to be falling apart at the seams, and often they’ve already had their bugs worked out. Further, when you buy a used car, you don’t need to worry about depreciation, as the value assessed on a used car is the post-depreciation number. The previous owner took the hit on their car’s value, and now you don’t have to. Further, newer cars have safety features that can help reduce your insurance costs, but if you buy a used car that is still reasonably fresh, it’s likely the safety recalls have already been seen and handled.
Consider Additional Annual Costs of Ownership
Before signing away a large chunk of your budget for the next 5-7 years, you should research ownership costs outside the car payment.
- Every six months to a year, you’ll need to decide on insurance and whether to pay monthly or every six months.
- You’ll need to perform routine maintenance every 2-3 months, or 3000 miles, to keep your new car running smoothly.
- Fuel costs are fluctuating more rapidly than in recent years, and the costs to keep our cars on the road can be detrimental to our budgets.
- Every few years, we are required to renew our tags and registration with the local department of motor vehicles and update our driver’s licenses.
All of these costs add up and contribute to the cost of owning your new car.
Ultimately, buying a car in 2023 is an individual decision that specific needs and preferences can inform. Be sure to research and take the time to find the best option. If buying a new car is something you’re considering, there are plenty of potential benefits—make sure you know what you’re getting into before you sign on the dotted line.
The above information is meant to serve as a guide only and should not be considered financial advice. If buying a car in 2023 is something that interests you, make sure to get professional help from a trusted financial advisor or automotive specialist.
When the Time is Right
When deciding if now is the right time to buy a new car in 2023, consider your financial situation and how long you plan on keeping your vehicle. If interest rates stay low and manufacturers or dealerships offer great deals that make sense for your budget and lifestyle, buying a new car might be the right choice for you in 2023!
However, if interest rates start climbing or if there aren’t any special offers available at this time, then waiting until later on might make more sense financially. Ultimately, only you know what decision will work best for your budget and lifestyle, so do your research before making any decisions!
Kenneth is a proud native of sydney, born and raised there. However, he pursued his education abroad and studied in Australia. Kenneth has worked as a journalist for almost a decade, making valuable contributions to prominent publications such as Yahoo News and The Verge. Currently, he serves as a journalist for The Hear Up, where he focuses on covering climate and science news. You can reach Kenneth at bloggerjohnsmith12@gmail.com.