If you find yourself on the hunt for an affordable new vehicle in 2023, you might start your search with the Kia, Chevy and Ford brands. According to Cars.Com's first-ever Affordability Report, they offer the most affordable new cars for 2023. Add to that, Chevrolet leads when it comes to trade-in values.
Cost-Conscious Car Buyers
Affordability is top of mind for consumers heading into 2023 according to Cars.com, with less than half of Americans (46%) feeling financially confident. Consumers are worried about number of things like inflation, job insecurity and rising interest rates. Still, Cars.com says there is pent-up demand for new vehicles due to the inventory shortage that began in 2021, that is beginning to ease. The result, researchers say, is a robust car-car-buying market of cost-conscious consumers.
“The compounding effects of inventory shortages, economic uncertainty and industry challenges have made value one of the most sought-after features in a vehicle,” said Jane Ulitskaya, Cars.com news editor. “Electric vehicles and new technologies will continue to dominate the media and capture our attention, but affordability is the trend that’s propelling today’s car shoppers.”
Affordability Report
The report follows the evaluation of more than 70 currently available vehicles that Cars.com evaluated by model, trim, features, fuel efficiency or a minimum range requirement for EVs and compared against the median price for each category.
The following topped the list of best value cars for 2023:
|
Cars.com’s Affordability Report Top Cars by Segment |
|||
|
Competitive Category |
Median Category Price |
BEST VALUE Model/Trim |
Median Price |
|
Small Car |
$25,745 |
2023 Kia Rio S with Technology Package |
$20,240 |
|
Small SUV |
$34,195 |
2023 Chevy Trailblazer LS with Driver Confidence Package |
$23,440 |
|
Small Pickup Truck |
$43,070 |
2023 Ford Maverick XL with Co-Pilot360 Package |
$26,660 |
|
EV/Plug-in Hybrid |
$59,670 |
2023 Chevy Bolt EV 1LT with Driver Confidence Package |
$28,330 |
Car shoppers will likely be surprised at higher prices. Cars.com says a survey of in-market shoppers indicates more than half plan to purchase a new vehicle, and 1 in 4 expects to spend less than $20,000, a figure that might prove challenging given that the median new-car price was more than twice that at the end of 2022.
“A growing preference for larger, costlier vehicles is driving shoppers to lean on a combination of long-term savings, flexible financing terms and the trade-in market to bridge the gap between the right car and the right price,” said Ulitskaya. “Many who typically purchase new models are taking a fresh look at the used-car marketplace, which is sustaining the demand for trade-in inventory.”
Trading In
As CarPro Show host Jerry Reynolds has shared on the weekly show, higher used vehicle prices are great news if you have a trade-in. This could help offset the cost of a new vehicle.
Cars.com also reports that as used-car prices spiked amid the inventory shortage, trade-in values followed suit, hitting record highs by mid-2022 before leveling out. Here are some Cars.com stats of note:
- Approximately 40% of in-market shoppers will trade in a current car before purchasing a new one
- Of those looking to buy used, 76% are looking for a model no more than 5 years old.
As part of the Affordability Report, Cars.com examined trade-in values for available used vehicles from model-year 2018 and identified the best same-model upgrade values — notably they are all electric vehicles. Used EVs are trending much more affordable now than they were a year ago.
The top three 2018 models with the best trade-in value include:
|
Vehicles With Best Trade-in Value as Percent of New Purchase Price |
|
|
Chevrolet Bolt EV |
62% |
|
Honda HR-V |
59% |
|
Toyota Prius Prime |
57% |
Saving Up
If you're like two-third2 of current car shoppers, you plan to save between three months and a year for a vehicle, according to Cars.com data. Most shoppers plan to save 10%-25% of the final price before purchase, and nearly half are planning to make a down payment of less than $5,000.
Where both new- and used-car shoppers will be the most surprised is likely with their interest rate. This goes for even those with great credit ratings.
Super low rates just aren't there for anyone. Typically, if you have stronger credit you'll get a better rate, however — Cars.com says even those with very good credit — are now routinely receiving financing offers with double-digit interest rates. Those with non-prime and subprime credit profiles are seeing rates between 20%-30% with shorter financing terms. Even those with terrific super-prime credit ratings (800-plus), the average interest rate is still high at 8%.
Factoring In Fuel Prices
Another factor is fuel prices. They've settled down since being very high during parts of 2022. Still, AAA reports the national average for a gallon of gas was $3.50 as of January 30, 2023.
Cars.com says fuel prices are a key component of its analysis. Aside from the top-ranked EVs and plug-in hybrids, which all had calculated first-year fuel costs between $600 and $1,100, the most fuel-efficient gas-powered vehicle among the finalists is the Hyundai Elantra, with an estimated first-year fuel expense of $1,350.
For more report details, click here.
