Future of Auto Sales: What Will Happen in 2023?

After the Covid-19, everything has been moved upside down - so as the auto market. We have been observing the massive chip shortage for the last 3 years and it is still not recovered yet. People have been facing the skyrocketing prices of used cars because there have not been enough new cars on the market and people have been relying on used cars causing the overall inflation in the used car market in 2022 .

After two years of recovery from the global pandemic, people had been happier while checking the 2022 car price overview as compared to the 2020 and 2021. Many of us were finally hoping for a better future of auto sales in 2023; however, it is still dubious so far even at the end of 2022.

If you are planning to buy a new car in 2023 and you are looking at expert opinion on the future of car sales in 2023, you should keep reading this detailed buying guide for 2023.

Auto market forecast has never been more fluctuating than it is nowadays. The pandemic outburst had literally shut down the whole market for the whole two years. Chips shortage and enforced lock down caused a visible dump in the car market but everything was on a recovery track till last year when Russia tried to invade Ukraine. Furthermore, China also enforced another lockdown as a caution to prevent another massive pandemic.

These two major incidents have once again blown the whole market and the chips are gonna short again because China is shutting its major plants due to lockdown and whole Europe is affected due to Russia’s invasion in Ukraine. Now once again the future of auto sales may decline even in 2023 because all the major manufactures have been adapting the EV culture and chip shortage will affect the whole manufacturing process and the newer car price will once again touch the newer heights.

In the United States, the future of car buying is in massive danger because the upcoming tech-savvy car models would cost a massive fortune that no one would be able to or tempted to buy in 2023. Experts claim that buyers have become resilient now and the car market future with the same dealership plan is in real danger because manufacturers are still thinking about getting large profits even in these tough situations and now people have to pay almost $150 more per month than last year.

Thus, several experts are forecasting a decline in car sales upto 2.6% in 2023. People may eventually lose the interest of buying new cars (in 2023) due to insane prices. Used car market trends expectation says that people will eventually become satisfied with the used cars - not older than 4 years - than to buy insanely expensive new cars.

Car market will never crash because every year the demand for new cars gets better and better; however, it is not an ideal time to say that it will get better because of multiple factors like globally chip shortage, lockdown in China and Russia’s Invasion in Ukraine. Furthermore, the tough competition between top brands has made the manufacturing costs of new cars skyrocketing. It is no longer feasible for a common person to buy a new car so the average number of new car buyers may face a dump in 2023 till one of the major factors is solved.

On the other hand, the used car market is becoming better day by day. Right after the pandemic, used car prices skyrocketed which eventually got better. Now the average auction price of a used car is reduced by the dealerships and eventually the used cars are available in the used car dealerships at a better rate than the last two years. In the near future like 2023, used cars will be sold more than new ones, according to the auto market forecast.

YES! As far as new cars are concerned, the auto industry is in real trouble in 2023. China has once again implied lockdown, Russia has invaded Ukraine and the overall global chip shortage is once again skyrocketed. All the top competing car brands are complaining about a massive chip shortage that is going to last till the end of 2023. Even in this chip shortage, if some manufacturer tries to make some new cars with innovative design and tech-savvy models then it would be highly expensive in 2023.

Consumers are also afraid of betting on new cars because it may cost them a great fortune and still the global peace situation is not clear. That’s why people will continue to buy used cars online and they will not splash the bucks for some new cars at the highest monthly premium in history.