Kia, Chevy and Ford Offer Most Affordable New
Cars for 2023; Chevy Leads for Trade-In Value
1 in 4 Shoppers Expect to Spend Less Than
$20,000 on a New Car; the Median
Price of New Cars
Is More Than Double That
CHICAGO, Jan. 23,
2023 /PRNewswire/ -- Affordability is top of mind for
consumers as the new year starts, with less than half of Americans
(46%) feeling financially confident and consumers citing a range of
economic concerns including inflation, job insecurity and rising
interest rates.1 Financial concerns, however, are
being met with pent-up demand for new vehicles from the inventory
shortage that began in 2021 and is just now beginning to ease. The
result is a robust car-buying market of cost-conscious consumers
and the timely launch of car-shopping marketplace Cars.com's
(NYSE: CARS) first-ever Affordability Report.
![Cars.com logo (PRNewsfoto/Cars.com) Cars.com logo (PRNewsfoto/Cars.com)](https://mma.prnewswire.com/media/1013611/cars_com_Logo.jpg)
"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."
The Cars.com Affordability Report empowers car shoppers
with data-driven insights about comparative vehicle pricing, the
trade-in market and financing trends, and it uncovers a potential
disconnect between consumer expectations and current market
conditions. More than 70 currently available vehicles were
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
|
A Cars.com survey of in-market shoppers indicates more than half
plan to purchase a new vehicle, and 1 in 4 expects to spend less
than $20,0002, a
figure that might prove challenging considering the median new-car
price was more than twice that at the end of
2022.3
"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
The Affordability Report also provides insights that help
consumers understand how they can afford to pay for a car and the
value of trading in a vehicle. As used-car prices spiked amid the
inventory shortage, trade-in values followed suit, hitting record
highs by mid-2022 before leveling out.
Approximately 40% of in-market shoppers will trade in a current
car before purchasing a new one, and of those looking to buy used,
76% are looking for a model no more than 5 years
old.2 As part of the Affordability Report,
Cars.com experts examined trade-in values for available used
vehicles from model-year 2018 and identified the best same-model
upgrade values4 — 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 and Paying Out
Two-thirds of current shoppers aim to save between three and 12
months for a vehicle, most planning to accumulate 10%-25% of the
final price before purchase, and nearly half anticipate a down
payment of less than $5,000.1 Where both new- and
used-car shoppers will be the most surprised is with their interest
rate.
Gone are the days of super low rates. Typically strong credit
earns a better rate, however — even those with very good credit —
are now routinely receiving financing offers with double-digit
interest rates, and those with non prime and subprime credit
profiles are seeing rates between 20%-30% with shorter financing
terms. Notably, among those with a super-prime credit rating
(800-plus), the average interest rate is still high at
8%.5
In 2022, Cars.com launched new digital financing tools and
offered new ways for shoppers to sell their current car to a local
dealership. The technology helps shoppers understand what they can
afford, get preapproved for a loan, determine what their current
car is worth and claim an Instant Offer from a local
dealership.
Fuel Prices: Tanks and No Tanks
Though gas prices have since settled from the headline-grabbing
highs of 2022, affordability in the form of fuel expense remains a
major consideration for shoppers and a key component in the
Affordability Report's 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 $1,350.6
For more information on the 2023 Cars.com Affordability Report,
including a deeper dive into the data and methodology, visit
Cars.com.
1 Cars.com Consumer Survey; 1,027
responses; Jan. 5, 2023
2 Cars.com Consumer Survey In-Market Shoppers; 992
responses; Jan. 5-Jan. 6,
2023
3 Cars.com internal
data
4Cars.com-owned Accu-Trade
data
5 Cars.com-owned CreditIQ data
6 Cars.com internal calculations
ABOUT CARS.COM
CARS is the leading automotive marketplace platform that
provides a robust set of digital solutions that connect car
shoppers with sellers. Launched in 1998 with the flagship
marketplace Cars.com and headquartered in Chicago, the Company empowers shoppers with
the data, resources and digital tools needed to make informed
buying decisions and seamlessly connect with automotive retailers.
In a rapidly changing market, CARS enables dealerships and OEMs
with innovative technical solutions and data-driven intelligence to
better reach and influence ready-to-buy shoppers, increase
inventory turn and gain market share.
In addition to Cars.com™, the Company's brands include Dealer
Inspire®, a technology provider building solutions to future-proof
dealerships with more efficient operations and connected digital
experiences; FUEL™, an advertising solution providing dealers and
OEMs the benefit of leveraging targeted digital video marketing to
Cars.com's audience of in-market car shoppers; DealerRater®, a
leading car dealer review and reputation management technology
solution; CreditIQ™, digital financing technology and Accu-Trade™,
vehicle valuation and appraisal technology. The Company's portfolio
of brands also includes Auto.com™, PickupTrucks.com™ and
NewCars.com®.
The full suite of CARS properties
includes Cars.com™, Dealer
Inspire®, FUEL™, DealerRater®, CreditIQ™, Accu-Trade.com™,
Auto.com™, PickupTrucks.com™ and NewCars.com®. For more
information, visit www.Cars.com.
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SOURCE Cars.com Inc.