Used car prices went up last month, and the United Auto Workers (UAW) strike could impact new car prices soon. As we navigate these changes in the automotive landscape, here are 10 car models that are poised for significant price drops in October 2023.
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While the recent surge in used vehicle prices has caught the attention of many, there’s another aspect of the automotive market that’s slowly but surely coming into focus – the potential for substantial price reductions on select car models.
The Impact of Rising Used Vehicle Prices
According to Cox Automotive, the parent company of Kelley Blue Book, wholesale used vehicle prices experienced a 1% increase between August and September. This uptick in used car prices has made buyers wary, and while the used car market has certainly shifted, it’s the new car market that is beginning to show signs of potential change.
The UAW Strike and Its Influence on New Car Prices
Jonathan Smoke, Chief Economist at Cox Automotive, pointed out that the UAW strike has not yet had a direct impact on new car prices. However, he anticipates that October may bring the first signs of change. Automakers prepared for the strike by amassing a substantial inventory of new vehicles, which currently stands at its highest level since early spring 2021. Additionally, the UAW strike commenced on a smaller scale initially, helping to cushion its overall 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 this figure represents an average, and not every vehicle model is affected in the same way. For instance, the Ford Bronco and Chevrolet Colorado are currently experiencing a shortage in supply, which may lead to price increases. This, in turn, could also affect the prices of used vehicles, particularly those less than four years old that serve as substitutes for new cars.
The Influence of Interest Rates on the Auto Market
In addition to supply and demand dynamics, the auto market is grappling with higher interest rates on car loans, the highest in more than 20 years. According to data from car research group Edmunds, the interest rate on a new car loan averaged 7.4% in the third quarter, reaching a level not seen since 2007. This increase in interest rates has pushed the average monthly car payment to a record high of $736.
10 Car Models with Significant Discounts in October 2023
Despite the challenges presented by rising interest rates, there are still opportunities for those looking to purchase a new car.
Here are some of the car models offering substantial discounts in October 2023, based on data from RealCarTips:
1. 2023 Ram 1500 Tradesman:15.5% off MSRP.
2. 2023 Kia EV6 Light Electric: 14% off MSRP.
3. 2023 Hyundai IONIQ 5 SEL Electric: 13.2% off MSRP.
4. 2023 Alfa Romeo Giulia Veloce: 13% off MSRP.
5. 2024 Alfa Romeo Giulia Standard: 12.9% off MSRP.
6. 2023 Hyundai IONIQ 6 SE Standard Range Electric: 12.9% off MSRP.
7. 2023 Nissan Titan S: 12.5% off MSRP.
8. 2024 Ram 1500 Laramie: 12.4% off MSRP.
9. 2023 Dodge Durango SXT: 12.4% off MSRP.
10. 2022 Mercedes SL AMG SL 63: 12% off MSRP.
As the automotive market continues to evolve, these discounts provide a unique opportunity for buyers seeking value in their new car purchases. Keep an eye on these models, as they are poised for significant price reductions in October 2023.
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Please note that the information provided in this article is for informational purposes only, and the state of the automotive market may evolve. Consult with financial professionals and research the latest market conditions before making any financial decisions.