A record drop in prices is relief to car buyers. But inventories aren't at pre-pandemic levels, and interest rates are a burden for those financing a car.
After more than a year of overheated prices, the used-car market cooled by several degrees in December.
While experts say this year’s used-car market will continue to improve, consumers need to have realistic expectations of what car buying will look like in 2023. The market is experiencing “more of a slow return to normalcy than what you would call traditionally a decline,” says Joseph Yoon, consumer insights analyst at Edmunds, an online car guide. “The prices are still very, very, very much elevated.”
What this means for car buyers Consumers planning to buy a used car this year might be relieved to see lower windshield prices but will still find they have to navigate a distended car market. Potential car buyers should anticipate several trends when shopping for a used car this year. Continuation of higher-than-normal ownership cost As used-car prices drop, tempting potential buyers, the surge in interest rates will mean consumers who need to finance their purchases will likely continue to feel the pressure of the inflated market.
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