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New car prices are expected to start dropping soon -- but thanks to rising interest rates, car loan payments will likely stay right where they are, experts say.
"To our clients who refused to pay above sticker for a new car, your patience is about to pay off," writes Adam Jones, chief auto analyst for Morgan Stanley, in a note to clients. He goes on to attribute the predicted price drop on declining sales and an excessive inventory of new vehicles. A recent report from J.D. Power also predicts lower prices for similar reasons.
The news couldn't have come at a better time. In September, the average price for a new car was $45,622 -- a 6.3 percent increase over the same month last year, according to J.D. Power. However, interest rates on car loans have climbed to almost 6 percent -- a 15-year high, Jones says.
Is there any vehicle that's worth its sticker price?