If 2022 seemed like a hard time to buy a car, try doing it in 2023.
The auto industry is still in the throes of a worldwide chip and parts shortage, first brought about by the covid pandemic, which for months shuttered factories and supply chains, crunching demand.
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Many of these suppliers are still struggling to catch up, and high-performance chips, which require precision and time to manufacture, aren't made overnight.
Pair that with higher interest rates in the U.S., and it makes buying a new car quite the pricey task.
In fact, the September Consumer Price Index saw everything from food to gasoline to new cars go up compared to the year prior. Here's a breakdown of what some of the most recent data points look like:
- Food: increase 3.7% year-over-year
- Gasoline: increase 3% year-over-year
- Transportation services: increase 9.1% year-over-year
- New vehicles: increase 2.5%. year-over-year
In a glimmer of hope, used cars and trucks decreased 8% year-over-year.
An 8% decrease in used car prices seems like a welcome reprieve, but anyone who's in the market for a new car should be prepared to pay up. New vehicles still cost an average of over $48,000. As of May 2023 only three models were available in the U.S. market for $20,000 or less.
Some new vehicles take much longer to leave the lot
And while some used auto dealers might not have as tough of a time haggling with prospective customers this month, new car dealerships seem to be struggling with certain makes and models.
New data from Black Book indicates there are 10 vehicles that sit around on the lot for a far longer time than many others. And some of these brands, which are known for the luxurious appeal or reliability, might surprise you.
They are:
- BMW iX: average 131 days on lot
- GMC Yukon: average 127 days on lot
- Buick Encore GX: average 120 days on lot
- Audi A4: average 115 days on lot
- BMW X7: average 110 days on lot
- Jaguar F-Type: average 105 days on lot
- Mini Countryman: average 105 days on lot
- BMW X2: average 105 days on lot
- GMC Terrain: average 102 days sitting on lot
- Alfa Romeo Giulia: average 99 days sitting on lot
It might come as a surprise that BMW has no fewer than three models on the list of the top 10 here. But some customers are beginning to turn their noses up at expensive cars, particularly at those that may require pricier or more frequent repairs down the road.
On the other hand, some of 2023's best-selling vehicles in the U.S., so far, are:
- Ford F-series
- Chevy Silverado
- Ram Pickup
- Toyota Rav-4
- Tesla Model Y
- Honda CRV
- Toyota Camry
- GMC Sierra
- Nissan Rogue
- Jeep Grand Cherokee
