New cars are becoming more popular, but they often cost more to insure. (iStock)
New car sales are on the rise, with total sales reaching 1,396,700 units in December 2023. According to a report from J.D. Power.
Sales increased by 13.2% compared to December 2022, proving the popularity of new cars among drivers. New car sales in the fourth quarter of last year reached 3,826,000 units and are expected to increase by 9.8% compared to the fourth quarter of 2022.
“December grade cap[ped] “This year has been a strong year, as evidenced by double-digit year-over-year sales growth and the second-highest consumer spending on new vehicles in history in the same month,” said Thomas King, president of data and analytics at JD. he said. Power in recent reports.
Used cars haven't reached their prime like new cars. As of October 2023, used car sales have decreased by 4%. According to CarEdge data.
If you're buying a new car, you want to make sure you have the right insurance at the right price. Before purchasing insurance, it is important to compare several car insurance companies and their coverage. Credible's auto insurance marketplace simplifies this process. Get started today.
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Car prices are finally on the decline
Although prices for new and used cars are on the decline, they remain high. Car prices in November 2023 were up 23% compared to three years ago, when the pandemic began. According to Kelley Blue Book.
2022 has been a particularly bad year for car buyers, with December 2022 being the most expensive month for new cars. According to a J.D. Power report, the average price of a new car at the time was $47,329. However, prices are coming down, albeit slowly. According to a report from J.D. Power, the average price of a new car in December 2023 was $46,055, down $1,274 from 2022.
Prices of used cars are also falling, but not as rapidly as new cars.
“The average used car price in December is expected to be $29,413, reflecting a decline of 2.6% or $786 through December 2022,” King said.
Whether you buy new or used, make sure you have the necessary insurance to keep your car and wallet safe. Comparing multiple insurance quotes can save you hundreds of dollars a year. Visit Credible today to compare quotes for free.
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New cars tend to be more expensive to insure
New car prices are going down, but if you buy a new car, it may cost more to insure than a new car.
New cars are often more expensive than used cars, so insurance companies want more compensation in the event of an accident.this leads Insurance companies charge new car owners higher premiums.
Good drivers pay an average of about $141 a month to insure a new car. According to Zebra data. Used car owners pay about $123 per month in premiums and save on insurance. The exact amount you pay will also depend on your car's brand, mileage, and accident history.
Comparing multiple insurance quotes can save you hundreds of dollars a year. It's super easy to get a free quote in minutes through our partners here at Credible.
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