New Car Prices Could Come Down Soon
Oct. 7, 2022—New car prices may start coming down, but interest rates may stay high.
According to NBC News, JD Power forecasted in late September that lower list prices could be on the horizon. This is due to rising interest rates, high vehicle availability and a decline in economic conditions. JD Power reported an average transaction price prediction of $45,622 for September, which would be a record for that month. Back in August, a record of $46,259 was hit.
A note was released on Monday by Morgan Stanley Chief Auto Analyst Adam Jonas, which said that a stall in sales and a a high in vehicle supplies may contribute to new car prices coming down.
However, interest rates for car purchases are currently at 6% on average, which is the highest in 15 years. This could mean not too much of a decline in overall monthly payments for the new cars.