The automotive market is experiencing some noteworthy fluctuations in prices. Last month, used car prices increased, while concerns arose that the recent United Auto Workers (UAW) strike might soon impact new car prices.
According to Cox Automotive, the parent company of Kelley Blue Book, wholesale used vehicle prices saw a 1% rise between August and September.
Conversely, new car prices decreased by $60 over the past month, with an average cost of $47,397, 3% higher than last year.
As of now, the UAW strike has not yet affected new car prices.
However, Cox Automotive’s chief economist, Jonathan Smoke, anticipates that the first signs of changes will likely emerge in October.
Smoke suggests that automakers prepared for the strike by accumulating a substantial inventory of new cars, reaching its highest level since early spring 2021.
Initially, the strike began on a smaller scale, which helped cushion the impact. “We have gone from 57 days’ supply when the strike started to an aggregate of 52 days,” Smoke explained. “That’s still enough to keep prices relatively stable.”
It’s important to note that not all car models are affected similarly.
Specific models, such as the Ford Bronco and Chevrolet Colorado, face supply shortages, which may lead to price increases.
This could also affect the prices of used vehicles, mainly those less than four years old, and be considered as substitutes for new cars.
In addition to these challenges, the auto market is grappling with higher interest rates on car loans, reaching levels that have yet to be seen in over two decades.
According to car research group Edmunds, the interest rate on a new car loan averaged 7.4% in the third quarter, the highest since 2007.
The average monthly car payment reached a record high of $736.
Discovering Exceptional Savings: Top Car Deals in October 2023
Despite these fluctuations, there are still opportunities for consumers to find great deals on new cars in October 2023.
RealCarTips data reveals some of the most significant discounts on new vehicles, offering potential savings:
- 2023 Ram 1500 Tradesman – 15.5% off MSRP.
- 2023 Kia EV6 Light Electric – 14% off MSRP.
- 2023 Hyundai IONIQ 5 SEL Electric – 13.2% off MSRP.
- 2023 Alfa Romeo Giulia Veloce – 13% off MSRP.
- 2024 Alfa Romeo Giulia Standard – 12.9% off MSRP.
- 2023 Hyundai IONIQ 6 SE Standard Range Electric – 12.9% off MSRP.
- 2023 Nissan Titan S – 12.5% off MSRP.
- 2024 Ram 1500 Laramie – 12.4% off MSRP.
- 2023 Dodge Durango SXT – 12.4% off MSRP.
- 2022 Mercedes SL AMG SL 63 – 12% off MSRP.
These discounts present an opportunity for consumers to purchase in the current dynamic automotive market.
Source: Go Banking Rates