Car prices trending down as interest rates expected to drop this fall

The car buying process can be a challenging one, especially when interest rates are as high as they are. The financial burden can seem daunting, but car experts say car prices are actually trending down by a couple hundred dollars. While it's not a big drop off, at least relief is in sight when it comes to interest rates.

"We expect interest rates to come down into the late fall and into winter, and when that happens, it will make credit available for more people and it should make the purchasing of a loan more affordable," said Brian Moody, Executive Director of Kelley Blue Book.

Action News caught up with Moody to get the inside scoop on how to get a good deal on a car right now.

He says strike while the iron is hot. Do your research now so when interest rates drop, you can get the car you want right away. He also suggests getting pre-approved for an auto loan through your bank or a credit union before going to the dealer, that way you can compare your rate to the dealer's financing rate.

While buying that new luxury SUV might not be the best financial move right now, Moody says there's a lot of incentives to buying an electric vehicle because the supply is there, but the demand is not growing as rapidly as expected.

"There's lot more money available from taxpayer funded incentives, and on top of that those taxpayers funded incentives go directly to the purchase of the car," he said. "The manufacturers are then putting more money on top of that as well."

If the dealer can't come down much on the price, Moody says make sure to ask about extra perks like free car washes, free charging for an electric car or free oil changes.