INDIANAPOLIS – Vehicle prices are high.
The average transaction price for a new car in March 2023 was $47,713, according to Edmunds.
The company found that five years ago, 54% of large SUVs sold were over $60,000. Now, 94% of large SUVs sold are over $60,000.
Not only are car prices high, but the cost of borrowing the money for the car is also high. That’s why the average new vehicle payment hit an all-time high of $730 a month.
For one in six people, payments are $1,000 or more a month.
The average annual percentage rate for a new car financed is 7 percent, a rate that Ivan Drury with Edmunds said is not a normal average.
“We’re looking (at) generally something like 4% or 5% is seen as good or normal,” he said.
Stocks are starting to rise. The drone photos below show the same batch of cars in September 2021 compared to today.
Credit: DroneCam13
Lot of cars 2021
Credit: DroneCam13
Lot of cars 2023
So what can you do to try and save money? Look at the car manufacturer incentives, because they are slowly coming back.
“If you’re brand agnostic, if you’re willing to try something new, you’re going to have the best odds of getting the best deal,” Drury said.
He added that while cashback offers are straightforward, APR or interest rate offers need to be investigated.
“Find out what your credit score is. You want to take that number and go to the bank, go to the credit union and find out what you might get in general. Compare that to some of the ads you see from the car manufacturer or the dealer,” Drury said.
Also, see how long the car has been sitting on the lot. This is the information provided by the Edmunds site. Drury said if you see a vehicle that’s only been sitting for two weeks, give it time.
“If he hangs in there for a few more weeks, OK, you’re good. You might have some bargaining power in your hands,” Drury said.
Finally, if you have change, know that it’s worth it because values can vary from source to source.
“Whether it’s a private party, an online dealer, a local dealer, a CaxMax, I say buy that vehicle like there’s no tomorrow,” Drury said.
We hope to lower your payment in an expensive market.
