2 Reasons to Buy a New Car Right Now -- and 1 Very Good Reason Not To

This is the time of year we usually think about buying gifts for other people, but sometimes it's nice to treat yourself, too. If you've been thinking about buying a new car, you might be able to find some great deals right now. But you have to weigh more than just the retail price of the vehicle you're buying.

Below, we'll look at two reasons you may not want to put off a vehicle purchase any longer and one reason you may prefer to wait so you can decide what's right for you.

Two reasons you might want to buy a new car right now

Here are two reasons why buying a car right now could be a great move.

1. End-of-year deals

The end of the year often brings some of the best deals on vehicles because dealerships want to get rid of what they have to make room for new model-year cars on their lots. So they're often willing to part with them for lower prices in late fall and winter than they would if you were trying to buy a new car in the spring or summer.

Wandering car lots while it's cold and dreary out may not be your idea of a good time. But if it saves you a few thousand dollars on your purchase, it could be worth it.

2. Auto workers strike

The United Auto Workers (UAW) strike has now been going on for over a month and there's no sign of an end. This could potentially lead to a shortage of vehicles in 2024, and scarcity usually drives up prices. So if you try to wait, you could end up paying a lot more than you would if you bought a car now.

Or you might have to settle for a car that's not exactly what you want in the future. Some worry that automakers might do away with some vehicle models entirely due to the strike, leaving drivers with fewer options.

Why you might not want to buy a car right now

If you've gone as far as looking into auto loans for your new vehicle, you probably already know they're not great right now. Here's a look at average auto loan annual percentage rates (APRs) in 2023 by credit score:

If you were to borrow $30,000 for a new car with a middle-of-the-road 8.99% APR and a 60-month loan term, you'd wind up paying $623 per month and over $7,300 in interest over the lifetime of the loan. That's pretty high.

It might not be that big of a deal to you if you have a vehicle to trade or a large down payment. Then you'd be borrowing less so you'd also pay less in interest. However, any way you slice it, you're going to pay more than you would if you'd locked in an auto loan when rates were lower.

At the end of the day, you have to weigh how badly you need a new vehicle right now. If yours is totaled or barely runs, it's likely worth it to get a new one now, even if it means paying a little more. But if you don't need a car, you might consider taking a chance and waiting.

Alternatively, you could explore used cars instead. Strangely, used car loans can have even higher interest rates than new car loans do. But used cars also tend to cost a lot less and they're more affordable to insure. So it's possible you could still come out ahead this way. Explore both options before deciding which is right for you.