Will Car Prices Drop in 2024? What You Need to Know Before Buying
The evolving car market leaves many questions unanswered as consumers eye fluctuating car prices and wonder if there is an end in sight. Moon Township Ford is here to guide you through post-pandemic car shopping as we cover influencing factors like car supply and demand, interest rates, dealership incentives, and how each could affect your purchasing decisions. Our premier Ford dealer in Pittsburgh, PA, wishes to ease your concerns about purchasing a new or used car in today’s market with facts straight from automotive experts answering, “Will car prices drop in 2024?” Read along for essential information about new and used car prices. Visit Moon Township Ford to schedule a test drive today.
Average Price of New Cars in the US: Will New Car Prices Drop in 2024?
According to Edmunds, the average price for a new car in the United States was 1.2% less in January of 2024 than in January of 2023. New car prices have soared over 21% on average since 2020 but are starting to trend downward. The average price of new cars would settle around $47,000. Though the drop in car prices isn’t significant, auto experts believe the trend will continue as supply grows and automakers are driven to lower prices.
Factors Influencing Car Prices: Why New Car Prices Are Falling
The new car market’s bubble has burst, with overall new car price trends indicating a correction after years of steady increases. An oversupply of approximately 5 million vehicles may prompt price reductions in 2024, per Nasdaq. Competitive pricing from manufacturers may sway consumers towards larger, less fuel-efficient cars.
The average new car price decreased by about 3.5% since December of 2022, when prices peaked. Kelley Blue Book automotive experts believe electric car prices in 2024 will remain fairly steady, though the upfront cost of an EV is 17% higher than the overall new car market average. However, within the last year, the average price for a new EV has declined by 21%. Auto experts also believe that prices will decrease even further once electric vehicles become more mainstream due to the demand. In the first quarter of 2024, EV sales increased by 2.6% year-over-year, leading many to believe the EV revolution will continue.
Used Car Prices: Will Used Car Prices Drop in 2024?
The used car market witnessed some decreases in 2024 but did not return to its pre-pandemic levels due to high demand. Wholesale used car prices declined by 13.8% in the first 15 days of February, marking a notable shift in market dynamics. The average cost of a used vehicle is down 3% from a year ago and 12% below the peak in April of 2022.
However, auto experts have also noted that used car sales are beginning to weaken, and used inventory is sitting on dealers’ lots amidst 0% APR financing deals for new cars. Per Cox Automotive, the prices of new cars dropping in 2024 will also force the cost of used cars to fall. While used car prices are beginning to decline, it is also important to note that this will affect trade-in values for drivers planning to sell vehicles to dealerships.
Will Car Lease Prices Go Down in 2024?
If you’re looking for the best time to lease a car in 2024, your best bet is to consider timing as one of the most critical factors in scoring a favorable deal. To decide when the best time is to begin a new lease, keep in mind the time of year you plan to lease, and aim to do so around holidays or toward the end of the year from October to December.
When to Buy a Car in 2024
Incentives between April and July are forecast to be the most attractive in the new car market. Car shopping often takes place in the spring and summer. Interest rates are expected to be cut this year, which may give people more breathing room. Manufacturers are ramping up incentives on some new cars, and drivers can get deals on used cars under three years old.
Buy Your Next New or Used Ford
Moon Township Ford is excited to announce car prices will drop in 2024 based on the current trends. If you’re ready to add a new or used Ford to your family lineup, we’re here to help make that happen. Visit our Pittsburgh, PA, Ford dealer to discover the best deal for your lifestyle and budget, and begin your next adventure today.
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