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One year ago, the auto market was in the depths of the new car shortage. Semiconductor chips were in short supply, and dealer markups were at their worst. In December 2022, the best year-end car deals are the best we’ve seen since 2020, when the average price paid for a new car was $38,000. Today, that figure is north of $48,000. Still, end-of-year deals present an opportunity for car buyers to get a deal at a time when rising interest rates are putting affordability out of reach for many.
Check out these other CarEdge resources, updated monthly:
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The last six months of 2022 brought softening car prices after 18 months of gains. Used car prices are down 17% at the wholesale level, and retail prices are finally coming down. Will new car prices drop in 2023? Will we continue to see used car prices drop in 2023? Here’s what the data tells us.
Used Car Price Trends in 2023
Expect used car prices to continue a steady decline through at least the first half of 2023. For new cars, it’s a bit more complicated, as we explain below.
From March of 2021 through early 2022, used car prices climbed by over 50%. Just as used car prices began to soften in mid-2022, inflation soared through the roof, acting as a parachute for falling prices.
Used car prices have declined since mid-2022. Expect prices to continue dropping in 2023.
Still, no matter how you look at the data, used car prices have fallen over the past six months. Data from industry analysts at Black Book shows that retail used car prices have decreased consistently as demand decreased, mostly due to interest rate APRs shooting up dramatically. It now costs thousands of dollars more in interest to finance a car, especially for big borrowers with 72+ month loans.
Industry analysts at Manheim track used car prices. Used car prices are likely to continue falling into 2023.
In 2023, all signs point towards used car prices continuing to fall. If you’re wondering where all of these lower prices are, there’s a good reason for that. The most common metric used to track car prices is transaction price, or how much a buyer actually pays for the car. This is different from the sticker price. Dealers have been slow to drop sticker prices, but they’re much more willing to negotiate with buyers who put in the effort.
Why are cars more negotiable? Used cars aren’t selling as quickly, and rising interest rates mean that floorplanning costs are putting pressure on dealerships to sell soon, rather than hold on to inventory. Every day a car sits costs them money.
How Much Will Used Car Prices Drop?
Don’t expect used car prices to freefall in 2023, barring a severe economic downturn. Prices will in all likelihood continue to trend downward, becoming slightly more negotiable with each passing month.
Demand for affordable vehicles remains high, but unfortunately dealers are stuck trying to cover their losses. What losses, you ask? Thousands of car dealerships quite frankly paid too much for cars at wholesale auctions over the past year. Now that prices are falling, dealers are trying to squeeze every last dollar out of each deal. Therefore, we expect softening used car prices in 2023, but only moderate month-to-month price declines.
On CarEdge Car Search, we’ve been seeing used cars sitting on dealership lots for longer, and as floorplanning costs rise with interest rates, dealers are dropping prices.
Prices for this 2019 Ford Explorer have been dropping each month. This is commonplace across the market for mainstream models, but not for electric cars or some hybrids.
New Car Prices in 2023
Don’t expect MSRPs to go down
For mainstream models, dealer markups may become a thing of the past
You CAN negotiate new car prices in 2023
Inventory is climbing back, but will never return to ‘normal’
There’s less optimism on the new car front, but 2023 will still bring better prices to those who are patient and willing to negotiate.
In 2021, the chip shortage slammed automakers, and new car inventory was down to roughly one quarter of pre-pandemic norms. Now, new car inventory levels are increasing, slowly but steadily. Over the past year, new car inventory levels in the United States have risen from a low of about 900,000 cars per month to 1.6 million cars per month, and we expect to see inventory numbers increase closer to 2 million cars per month in the near future.
These numbers are still below historical norms, but automakers have increasingly made it clear that inventory will never be as high as it was back in 2019.
There’s a lot of pent-up demand for new cars, especially when it comes to hybrids and EVs. For most if not all of 2023, expect popular models to fly off the lot as quickly as automakers can produce them.
For other more mainstream models, it will once again be possible to negotiate new car prices below MSRP. In fact, our members are reporting more success with new car deals already. Check out some of their amazing success stories.
Incentives Remain Very Low
According to Kelley Blue Book, manufacturer incentives remain near all-time lows around 2% of the average transaction price. In late 2021, incentives averaged 4.3% of ATP. Go back to early 2020, and incentives averaged 11% of transaction prices. Wow!
Why are new car incentives going to remain low? Automakers have been forthright about their intentions to keep inventory low, even after supply chain challenges are put behind us. Without a glut of new cars waiting to be sold on dealer lots, there’s no reason to bring back big incentives. This post-pandemic strategy is a win for dealers and automakers, at the expense of vehicle affordability for buyers.
Electric Vehicle Prices in 2023
In November of 2022, the average transaction price for an electric vehicle in the U.S. was $64,249. That’s $16,000 more than the average price paid in the overall auto market. As you can see in the graph above, EV prices have remained parallel to the overall market for years. That could soon be changing, but not for reasons you’re likely to expect.
Automaker executives have recently said that price parity for their electric and combustion lineups is just a few years away. Are EVs going to get cheaper that quickly? A few new, lower-priced EVs are on the way, but that’s not the main factor that will likely turn their price predictions into reality.
What is? Take a look at where MSRPs are headed for all new cars, including those powered by internal combustion engines. CarEdge Auto Expert Justise Lasley says that signs point towards electric vehicle prices remaining high, but traditionally-powered models will continue to receive MSRP hikes, ultimately resulting in ‘price parity’.
Simply put, EV prices may have peaked (and on average may start to fall), but other cars will get more expensive, possibly even catching up to EVs.
However, there are a few affordable EVs we’re excited about. All of these will be available in late 2023.
2023 Fisker Ocean (2023 builds will be $60,000+ trims, but Fisker claims that they will start producing a $40,000 variant in 2024.)
Don’t forget about the original affordable EVs, despite their charging faults. The Chevy Bolt, Nissan LEAF, Kia Niro EV and Hyundai Kona EV are all worth a look if you can handle hour-long charge times.
If you’re thinking about going electric in 2023, you might find these resources helpful:
The Takeaway: Negotiate Car Prices, Don’t Pay Markups
Yes, you can expect car prices to drop in 2023, but in most cases, you’ll have to work for it. Dealers are holding out with higher prices, hoping that buyers who don’t keep up with the market will stumble into their showrooms.
Would a car buying coach make this whole process easier for you? CarEdge is changing car buying for the better. This is LONG overdue, isn’t it? Check out hundreds of free resources, or learn more about how CarEdge can help you negotiate a better deal today.
As we head into December 2022, new car inventory is the highest it has been in nearly two years. Finally, it seems that automakers are climbing out of the supply chain problems that brought the industry, and car buyers, to a halt for much of 2021 and 2022. Which car brands will have the best deals in December? Who will have the most inventory on the lot? We spoke to CarEdge Auto Experts Justise Lasley, Mario Rodriquez and Phil Nader to find out.
Be sure to check out these other CarEdge member favorites too (updated monthly):
The Lexus RX continues to be a great deal option with high allocations to dealers before the refreshed 2023 model arrives. It’s not just new 2022 Lexus models, either. CarEdge’s Mario Rodriguez said that low-mileage used Lexus models are priced very well right now.
“December is the best month for Lexus, which should bring some good incentives. Target end-of-year car sales for the most leverage at negotiating a Lexus deal.”
One of our CarEdge+ members just got a great deal on a Lexus UX 250h using CarEdge tools and the empowerment that comes with understanding your deal. Check that out here. We’d love to help you save thousands of dollars on your car purchase!
CarEdge’s Phil Nader highlighted Cadillac’s higher inventory numbers and overall luxury price trends. Luxury car brands have seen the largest price declines over the past six months. This is most obvious with used luxury car prices, but new luxury models are more negotiable than at any point earlier this year.
“Cadillac is seeing higher inventory levels and an average incentive of $2,600,” Phil said. “Expect to see pricing under MSRP on the CT4, CT5 and XT4, XT5 and XT6. Buyers should feel confident that prices can and should be negotiated to 5% below MSRP.”
However, General Motors CEO Mary Barra has indicated that GM will never return inventory to pre-pandemic levels, making GM leaner and more efficient. In other words, they won’t have as many reasons to discount prices if they intentionally keep inventory below historic norms.
The Mazda CX-9 and other models are available with good manufacturer incentives and dealer discounts. Mazda just dropped their lease financing to 0% APR, so leases are looking very attractive. For example, right now the following Mazda lease deals are advertised for these 2023 models:
Mazda3 Hatchback: $271/month for 30 months with $2,481 due at lease signing
Mazda CX-5: $315/month for 24 months with $3,314 due at lease signing
Mazda CX-9: $367/month for 24 months with $3,462 due at lease signing
Outgoing 2022 model-years have great financing offers right now. The 2022 CX-9 has 1.9% APR for 36 months with no payments for 90 days. Most other 2022 Mazda models have 2.49% APR right now too.
We expect even better Mazda deals in the second half of December.
One of our members successfully negotiated a great deal on a 2023 Mazda CX-5. The dealer was still pushing back, but as you can see here, Mazda dealers are motivated to sell, despite their determination to force junk fees.
Right now, our CarEdge Auto Experts are helping Nissan buyers with negotiable deals on the Nissan Altima, Rogue and Murano, especially in the mid-spec SV trim. Mario says that the best Nissan deals are in the Northeastern U.S., but good Nissan deals are becoming more common in the rest of America too.
These are the best Nissan offers this month:
2.19% APR for 36 months: Nissan Altima
2.69% APR for 36 months:
Nissan Versa
Nissan Sentra
Nissan Maxima
Nissan LEAF
Nissan Kicks
Our CarEdge+ member was even able to seal the deal on a Nissan Pathfinder Platinum at MSRP using CarEdge’s proven negotiation tactics. See our member’s amazing accomplishment here.
Note: The best Nissan deals may be short lived. Of the automakers on this list, Nissan faces the most severe ongoing inventory shortages. Nissan’s U.S. sales tumbled 31 percent in the first nine months of 2022. In November, further production cuts were announced. The Altima, Frontier and Titan will become harder to find in a month or two.
Luxury cars are negotiable today, and the prices will continue to drop in December. CarEdge members have successfully negotiated 7-10% off of MSRP on the Audi Q5 and Q7.
Sedans such as the A5 can be had at or near MSRP, as proven by CarEdge member Elan recently. We expect more negotiability in December as year-end car sales get underway.
Audi is offering finance deals right now, with most models available at 3.99% APR for 72 months. Most other automakers are limiting their competitive APR offers to no more than 48 months, so this is a rare opportunity.
BMW prices are negotiable as luxury prices soften.
Our Auto Experts are helping members negotiate 6-9% off MSRP for the BMW 3 and 5 series. The BMW X3 and X5 can be negotiated 6-9% off MSRP in some regions.
One of our members had a MASSIVE win with a BMW M340i xDrive recently. They negotiated $2,000 off of MSRP on one of the most difficult cars to find in the country right now. We’re confident this is a sign of even more negotiability to come with BMW and other luxury brands.
CarEdge Auto Expert Mario says that Alfa Romeo models are quickly becoming negotiable in late 2022. The Stelvio should be possible at 7-10% below MSRP. In fact, bringing the price below MSRP should be your expectation for at least the Stelvio in December.
What If the Dealer Won’t Budge?
At the very least, don’t pay over MSRP for the cars mentioned above. If your preferred dealer isn’t ready to negotiate pricing on these models, you should expand your search radius. I know it sounds ridiculous, but I myself saved $4,000 by purchasing my Hyundai IONIQ 5 a few hundred miles away from home. You likely won’t have to go that far.
We could see better deals from Ford, GM and Stellantis (notably Ram and Dodge) in December. Their inventory is higher now, and that’s a great sign for buyers.
Follow the CarEdge FREE resources blog for the latest car price updates! We hope to see you on the free CarEdge Community forum, where thousands of car buyers and owners come together to empower the consumer.
One third of American drivers are seriously considering going electric as generous tax credits, fuel savings and reduced emissions lure the masses towards EVs. My own household made the switch in early 2022, and we’re never going back to ICE. In hopes of adding clarity to the current EV market, we’ve created this resource to share what we think are the BEST electric cars, trucks and SUVs in 2023. We’ve also shared what we think are the worst.
The Best Electric Cars in 2023
These models are stand-outs for their value. Range, charging speed and available features are given priority over performance in our analysis.
2023 Tesla Model 3 Rear-Wheel Drive
Price: $41,990
Range: 272 miles
Fast charging (adding 200 miles in 20-30 minutes)
Why it’s great: The Tesla Supercharger network makes cross country travel hassle-free. Tesla charges are very reliable, and with 1,500 locations in all 50 states, finding one is rarely an issue.
Plus, the price you see on Tesla’s online configurator is the price you pay (before taxes and required fees, of course). While legacy automakers continue to struggle with out-of-control dealer markups, Tesla and other direct-to-consumer EV makers have the upperhand on pricing.
Why it’s great: The Model Y is the larger, more family-oriented version of the Model 3. Last year, the Model Y overtook the 3 as the best-selling EV in America. Although it is the most expensive model on this list, if you can afford it, the ease of public charging, great range, spacious interior and exhilarating performance all make this the sweet spot for many buyers. Plus, there are no dealer markups.
But wait, there’s more. Both the Model Y and Model 3 are available for delivery soon after placing an order. Tesla wait times are between one and three months as of late 2022. That’s about as good as it gets in today’s EV market.
Should you ever decide to sell, both of these Teslas have amazing resale value.
Price: $46,250 (dealer markups are common but negotiable)
Range: 303 miles
Fast charging: Add 200 miles of range in 20 minutes
Why it’s great: The 2023 IONIQ 5, Kia EV6, and Genesis GV60 are the first models powered by Hyundai Motor Group’s Electric Global Modular Platform. This is next-gen 800-Volt architecture at (relatively) affordable prices, and that’s awesome.
Plus, the IONIQ 5 is spacious, and looks really cool. Sadly, Hyundai has had a very difficult time scaling up production due to supply chain constraints, so expect to either wait for at least six months, or battle outrageous dealer markups to get your hands on a rare allocation.
Price: $49,795 (dealer markups are common but negotiable)
Range: 310 miles
Fast charging: Add 200 miles of range in 20 minutes
Why it’s great: Kia’s version of the IONIQ 5 looks completely different, with very similar specs. That’s because both models share the e-GMP platform with great range and even better charging.
The 2023 EV6 has slightly more availability than the IONIQ 5 right now. For the 2023 model year, Kia decided to drop the “Light” base model, kicking the entry-level price all the way up to nearly $50,000.
As always, I recommend everyone take a test drive before dismissing EVs. They’re quiet, efficient and fun. The EV6 would be a great one to take for a spin.
Fast charging: Add 190 miles of range in 28 minutes
Why it’s great: The VW ID.4 is now made in America at Volswagen’s Chattanooga, Tennessee factory. That means it will qualify for the revised EV tax credit (up to $7,500), as long as your VIN confirms that it is an American-made ID.4. I was impressed during my test drive of the ID.4. It rides like a luxury crossover, and has plenty of acceleration when you need it. However, it’s definitely the least sporty of this bunch, but it’s also the least expensive.
Now made in America, there is also a new cheaper option starting at $37,495. However, with public charging infrastructure slow to build out, the expected 208 miles of range is not enough for us to confidently recommend it to anyone but those who expect to stick around urban areas 95% of the time. The ID.4 Pro, on the other hand, is exceptional value with the EV tax credit.
Price: $90,000-120,000 (before markups of up to $100,000)
Range: 329 miles
Why it’s horrible: Where do we start? The Hummer EV costs $100 to charge (because it has a MASSIVE 212 kilowatt-hour battery pack), weighs 9000 pounds (that’s 2x the weight of the typical F-150), and is horrible for the environment. If you’re looking to go green with your EV purchase, this isn’t it. It’s also very expensive, but that’s less surprising these days.
At auction, we’ve seen many Hummer EVs selling for over $200,000. No thanks.
2023 Mazda MX30
Price: $34,000
Range: 100 miles
Why it’s horrible: If you’re considering the Mazda MX-30, send me an email at justin@CarEdge.com. I’d like to talk you out of it. I have nothing against Mazda as a brand (they make some awesome cars), but I am very against anyone buying an electric car with just 100 miles of range in 2022. Sure, maybe it’s just for around town. Have you thought about resale value? With barely 100 miles on a charge and slow charge times of around one hour, I’m afraid Mazda’s first EV won’t be worth its scrap metal value in a decade.
Other options to consider at this price point? The Nissan LEAF, base Volkswagen ID.4, Chevrolet Bolt, and soon-to-come Chevrolet Equinox EV are all far more capable for under $40,000.
2023 MINI Hardtop
Price: $34,000
Range: 110 miles
Why it’s horrible: I sure hope CarEdge’s own Ray Shefska forgives me for bashing the electric MINI, but with 110 miles of range and slow charging, I don’t see a single reason why anyone should consider this EV. It’s one of the last ‘compliance cars’ in the EV market.
2024 Cadillac Celesiq
Price: $300,000+ (yes, count those zeroes)
Range: 300+ miles
Why it’s horrible: Would you pay Rolls Royce money for a Cadillacl? GM seems to think you would. I’m all for going all-out on EV design and innovation, but when Cadillacs cost more than houses, I can’t help but shutter. But hey, it will be hand-built.
New car inventory is rising, and that motivates automakers to offer better incentives. Cyber Monday 2023 will be a great time to buy if you’re in the market for a new car. Before you run out to buy a car on Cyber Monday (November 27), here’s what you need to know:
Auto loan rates now average north of 7% for new cars, and 14% for used cars. Leasing is one way to avoid paying interest, especially for well-qualified buyers (those with decent credit scores). Here are some of the best value lease deals in November:
Whether you’re in the market for a new or used car, a lot can change in the span of a month. Cyber Monday car deals are just the tip of the iceberg. In 2023, new car inventory is much higher than in recent years. There are A LOT of 2023 models still needing to be sold, especially when it comes to General Motors, Ford, Jeep and Ram.
So, what’s the difference between taking advantage of Cyber Monday car deals and waiting a bit longer? Those with patience are likely to be rewarded with the best deals yet in 2023: year-end car sales. Let’s take a look at why this is so…
Floorplanning costs are skyrocketing. Did you know that dealers finance the cars on their lots, much like car buyers do? You might have noticed that interest rates are rising. In fact, the average new car APR is now 10%. Dealers are paying more in financing costs for floorplanning, and by December, rates will be even higher. Car buyers will have more leverage in the final weeks of December, especially on vehicles that have been sitting on dealer’s lots for months on end.
Dealers will need to rotate inventory. No dealer wants to be the one with the old stuff, especially when it comes to newly redesigned or discontinued models. As the new year approaches, dealers warm to the idea of negotiating below MSRP for some models. Expect deals on 2023 models, less so for 2024 models.
Everyone wants a bonus. Most dealers dish out year-end bonuses to salespeople who made the most sales. December is crunch time! They’re ready to cut a deal, and you’ll be there to use that leverage to your advantage with end-of-year car deals.
In summary, there will be better new and used car deals in December. We’ll have the best year-end car deals posted here.
Cyber Monday Car Sales – The Complete List
We’ve sorted through ALL of the ads to find you the biggest and best Cyber Monday car deals in 2023.
0% Financing Offers
Interest rates average north of 7% for new cars, so it’s a big deal when zero percent interest offers return. The following models are all advertised for 0% APR in November:
Get your hands on these models with 0.9% APR for qualified buyers. Most low APR offers are for remaining 2023 model year inventory. It’s great to see some excellent Mazda deals this month. Mazda has been rising in popularity in recent years, with good reason.
The GMC Sierra at 0.9% APR is hard to beat. Hyundai’s electric vehicles are the fastest-charging EVs for under $50,000. Since they lost the federal tax credit, they’ve been slow sellers.
These are the models advertised with 0.9% APR in November:
General Motors has plenty of inventory today, and is bringing low APR offers to attract buyers. These are the models with 1.9% to 2.1% APR offers in November.
Some manufacturer incentives include a hefty amount of cash bonus for your deal. We’ve picked through all of the sales to find you the best cash incentives this month:
Jeep has massive cash discounts right now, plus no payments for 90 days. Here are the best Jeep offers in November:
Ready to outsmart the dealerships? Download your 100% freecar buying cheat sheets today. From negotiating a deal to leasing a car the smart way, it’s all available for instant download. Get your cheat sheets today!
