“Changing Tides in the Auto Market: New and Used Car Price Trends for October 2023”
Recent data from Cox Automotive, the parent company of Kelley Blue Book, highlights the dynamic shifts in the automotive market. Wholesale used vehicle prices have seen a 1% increase between August and September. However, new car prices have experienced a $60 drop over the past month, settling at an average of $47,397, which is still 3% higher than the same period last year.
The UAW strike, despite its initial impact, has yet to influence new car prices significantly. According to Cox Automotive’s chief economist, Jonathan Smoke, the strike’s effects might become more apparent in October. Automakers prepared for the strike by accumulating a substantial inventory of new cars, the highest since early spring 2021. The strike’s gradual start helped cushion its impact, with Smoke noting, “We have gone from 57 days’ supply when the strike started to an aggregate of 52 days,” indicating enough supply to keep prices relatively stable.
It’s essential to note that these trends are averages, and specific car models may be affected differently. For example, the Ford Bronco and Chevrolet Colorado are currently facing shortages, potentially leading to price increases. This shortage might also affect used car prices, especially for vehicles less than four years old that serve as viable alternatives to new ones.
In addition to supply-related factors, the auto market is grappling with higher interest rates on car loans. Interest rates for new car loans have reached their highest levels in over 20 years, averaging 7.4% in the third quarter, with an average monthly payment of $736, a record high.
Despite these challenges, there are still attractive deals to be found in the new car market for savvy shoppers. Here are some of the notable discounts on new cars for October 2023, as reported by RealCarTips:
- 2023 Ram 1500 Tradesman
- Average MSRP: $42,650
- Average discount: $6,599
- % off MSRP: 15.5%
- 2023 Kia EV6 Light Electric
- Average MSRP: $43,925
- Average discount: $6,146
- % off MSRP: 14%
- 2023 Hyundai IONIQ 5 SEL Electric
- Average MSRP: $52,285
- Average discount: $6,904
- % off MSRP: 13.2%
- 2023 Alfa Romeo Giulia Veloce
- Average MSRP: $51,515
- Average discount: $6,686
- % off MSRP: 13%
- 2024 Alfa Romeo Giulia Standard
- Average MSRP: $44,075
- Average discount: $5,703
- % off MSRP: 12.9%
- 2023 Hyundai IONIQ 6 SE Standard Range Electric
- Average MSRP: $42,715
- Average discount: $5,518
- % off MSRP: 12.9%
- 2023 Nissan Titan S
- Average MSRP: $42,245
- Average discount: $5,294
- % off MSRP: 12.5%
- 2024 Ram 1500 Laramie
- Average MSRP: $58,980
- Average discount: $7,304
- % off MSRP: 12.4%
- 2023 Dodge Durango SXT
- Average MSRP: $41,735
- Average discount: $5,191
- % off MSRP: 12.4%
- 2022 Mercedes SL AMG SL 63
- Average MSRP: $179,150
- Average discount: $21,481
- % off MSRP: 12%
These discounts provide opportunities for prospective buyers to find compelling deals on a range of vehicles, despite the evolving dynamics of the automotive market in October 2023.
Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Genz Flash journalist was involved in the writing and production of this article.