3 Things to Know Before Buying a Car Right Now

1. Transaction Price Remains Stable month-to-month while Used Sales Grow. Average transaction price in July – while up 12% from a year ago – remained about the same as June 2022. Total vehicle sales are down 2% since from June 2022, but used car sales have actually increased 4% over the same period. Seeing that new inventory is still being rocked by chip shortages, an increase in used car sales seems promising for those in need of a new ride and don’t have the luxury of waiting it out.
2. Auto Industry Addresses Affordability Concerns. “[In July] we’re seeing the first response from the industry to address affordability concerns, by increasing incentives for the first time in nearly 20 months,” said Zack Krelle, Industry Analyst at TrueCar. Incentive spend is up to an average of $1,162, which basically means OEMs are trying to make buying a car more enticing for consumers.
3. Brand Loyalty is Beginning to Waver. Inventory is remaining close to historically-low levels; but, some automakers (also referred to as OEMs) are doing better than others – allowing them to differentiate themselves from the pack. “OEMs that have inventory and supply are weathering the drop in sales differently than the ones that don’t,” said Justin Colon, Vice President of OEM Solutions at TrueCar. “There may be long-term implications for brands that are low on inventory, as those brands could lose some loyal customers.” Simply put, due to fierce competition, markups, or other reasons, consumers who may have once only considered one brand are now cross-shopping competitors.

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Buying a new car on your own can be stressful. And while the market right now isn’t the easiest, it isn’t impossible. That’s where we come in – to help you navigate the car buying process, from start to finish line. Whether you need helpful tools, professional reviews, or vehicle listings, TrueCar is your one-stop shop.