CarGurus Reveals Top Savings Tips for Car Buyers in 2023
Cambridge, Mass - February 14, 2023
CarGurus (Nasdaq: CARG), the No. 1 visited digital auto platform for shopping, buying and selling new and used vehicles*, today released guidance for car shoppers looking for savings opportunities in 2023. Today’s car buyers continue to face a challenging market, with CarGurus data showing the average price for a used car up 40% and the average new car price up 31% since 2019. This is coupled with rising interest rates and ongoing inflation. However, opportunities for a deal are increasing as inventory levels begin to rise and prices moderate.
“Inventory and demand over the past three years haven’t played in the favor of car buyers, but we are seeing the tides start to turn. With the right research, tools, and preparation, opportunities are out there to find a good deal on new or used car,” said Matt Smith, deputy editor for CarGurus. “We are offering this guide as part of our focus to provide drivers the tools and information needed to confidently and conveniently buy and sell any vehicle, anywhere, with access to the best selection and price.”
Top tips from CarGurus include:
When buying used, consider younger models
While used car prices are still higher compared to their pre-COVID levels, the average used car price dipped below $30,000 in December for the first time since 2021. As reported in the CarGurus January Intelligence Report, younger used vehicles (2020 - 2022) continue to see the most significant price declines, with 2021 models dropping 20% since July 2022.
By comparison, used models listed under $10,000 continue to have limited availability, and average new vehicle prices have increased to more than $50,000.
Electric Vehicles (EVs) present opportunities
In addition to price declines in younger car models, used EV prices are also decreasing. Ford, Hyundai, Tesla, BMW, and Chevrolet models saw price declines of up to 26% since July 2022. Between used EV price declines and the availability of federal tax credits up to $7,500 on select EVs, right now might be the time to buy a new or used EV. Time will be of the essence for buyers looking to take advantage of tax credits, however, as many vehicles will become ineligible after March 2023 due to the expected addition of new battery sourcing requirements.
Time your purchase
Generally, buyers are more likely to find a good price if the dealership is making room for a new model year—particularly if the car is due for a redesign. If a buyer can manage to purchase a previous generation model right before the new generation lands at dealerships, there is a good chance of finding a great deal. CarGurus offers previews of car models available for sale, allowing shoppers to research whether a model is due for a generation change this year.
Certain times of year also lend themselves to the laws of supply and demand. Chances are good that shoppers will find the best deals for convertibles, for example, during the winter months. Similarly, summer is often the best time to buy larger cars like SUVs, thanks to typically higher gas prices.
Track model inventory for insights on negotiation power
Inventory levels have a close correlation to price and consumer buying power. CarGurus tracks car inventory trends monthly to better inform consumers and dealers. Over the past several months, CarGurus research has shown that new inventory for trucks and SUVs has increased compared to other model types, with the Chevrolet Silverado 1500 and Ford F-150 leading the way. For those in the market for a new pickup, now may be the time to find the right car.
In addition to these tips, visit cargurus.com for insights on negotiation strategies and pricing intelligence. Also, there are several practices car owners can follow to maintain the most value in a car when it comes time to sell. To learn more, visit CarGurus: Six Ways to Help Your Car Keep Its Value.
About CarGurus, Inc.
CarGurus (Nasdaq: CARG) is a multinational, online automotive platform for buying and selling vehicles that is building upon its industry-leading listings marketplace with both digital retail solutions and the CarOffer online wholesale platform. The CarGurus platform gives consumers the confidence to purchase and/or sell a vehicle either online or in-person, and it gives dealerships the power to accurately price, effectively market, instantly acquire and quickly sell vehicles, all with a nationwide reach. The company uses proprietary technology, search algorithms and data analytics to bring trust, transparency, and competitive pricing to the automotive shopping experience. CarGurus is the most visited automotive shopping site in the U.S.*
CarGurus also operates online marketplaces under the CarGurus brand in Canada and the United Kingdom. In the United States and the United Kingdom, CarGurus also operates the Autolist and PistonHeads online marketplaces, respectively, as independent brands.
To learn more about CarGurus, visit www.cargurus.com, and for more information about CarOffer, visit www.caroffer.com.
CarGurus® is a registered trademark of CarGurus, Inc., and CarOffer® is a registered trademark of CarOffer, LLC. All other product names, trademarks and registered trademarks are the property of their respective owners.
*Similarweb: Traffic Report, Q3 2022, U.S.