Cars are expensive assets, and economic conditions have made the auto market challenging for individuals shopping for new and used cars. The average price of a new car in the United States is $48,000, and many aspiring car owners wonder when prices will fall.
Knowing what to expect from the car market in 2024 is essential if you want to see exciting and practical cars for your family to use. You’ll better understand which direction new car prices and interest rates will go. Your knowledge of the automotive forecast will help you get the best deal for your dollar.
Fortunately, you’re in the right place to dive into the direction of the car market in 2024. Continue reading to time your next investment to get the best new and used car prices today!
Expect Slow Growth
When looking at and test-driving the car options at your local automotive dealerships, remember that the market will experience slow growth. While sluggish growth isn’t as exciting as rapid growth, it’s a positive trend compared to a recession.
Customer spending will remain low due to inflation falling and interest rates rising. Unemployment rates are low, and they’ll contribute to the marginal growth in the car market in the coming year.
Loan rates are still high, but the forecast looks favorable for them to begin dropping. The lower rates will make buying a new or used car more affordable for households nationwide.
Vehicle Supply Is Up
Another significant change in the car market for 2024 is the supply of new and used vehicles at auto dealership lots. The supply of sitting vehicles will likely encourage dealerships to offer discounted rates and incentives to motivate consumers to buy a car.
The disruptions to supply chains have prevented auto dealerships from receiving the typical shipments of new models. The combination of high supply and low prices creates a fantastic opportunity to buy a great car at a low cost.
The used car market will also be affected, but not to the same levels as the new car market. The market is expected to grow at a slower pace. Still, you can save money on car prices with lower interest rates. Shop at different dealerships to find the best deals.
Transition to Buyer’s Market
The past few years have been a fantastic market for sellers. Used and new car prices have been high, but the increase in supply will cause the sellers’ leverage to slip away.
Expect auto dealerships to struggle with new car sales due to pressure from manufacturers to charge the MSRP and invoice prices. Between higher labor costs and an increase in inventory, maintaining a solid profit margin will become a significant challenge.
Dealerships will face lower interest rates and smaller returns on investment. It’s an excellent time to explore the car market for your favorite vehicle brands to get the car you’ve saved for, like the Mazda CX-50.
Growth for Electric Vehicles
Aspiring car owners can expect more electric vehicle options to hit the market in 2024. The demand for these eco-friendly vehicles is increasing, and auto brands are adapting to meet those needs with affordable EV options.
Growth is expected with the automotive forecast, but manufacturers will need to find an effective marketing strategy to sell the average consumer in the United States that an electric vehicle is a good fit for their lifestyle and needs.
Access to the EV Tax Credit will help you save up to $7,500 when you purchase a plug-in electric vehicle. When combined with the lower interest rates and higher supply, you’ll take a chunk off the sticker price to save money.
Balance Restored
The past four years in the car market have been anything but ordinary, but the market is expected to stabilize in 2024. The balance in the industry will result in more options and better deals for families and individuals shopping for new cars. Online buying tools are making shopping more convenient and efficient than ever.
Many consumers in the US are putting more of a priority on personal transportation. The combination of changes due to the pandemic and increased supply will create a positive buying experience for more shoppers.
Tips for Exploring the Car Market
You can take several paths to find and buy a new vehicle. The best path involves researching and making informed decisions before visiting your local auto dealership.
At the beginning of your shopping process, determine your budget. Despite car prices dropping in 2024, it’s wise to ensure you have the money to afford your new car while covering expenses from unexpected emergencies.
Researching the different vehicle brands that stand out to you is also beneficial. Find brands known for reliability, warranty coverage, and customer service. You can capitalize on the changes in the car market by finding the best deals on your favorite makes and models.
Accounting for all vehicle-related expenses is a next-level move. An overlooked part of car shopping is getting an insurance quote on your desired vehicle. The down payment and monthly premium may be in your budget, but a high insurance premium could push your dream car out of your price range.
Most of all, take a test drive before deciding on a new or used car. It’s a wonderful experience to determine whether the vehicle will meet your family’s needs.
Take 30 minutes to sit in the driver’s seat and determine if you enjoy the comfort and layout. Experience driving the car in different settings, including the freeway. It’s the most effective way to find the perfect fit in the car market.
Use the Automotive Forecast for Your Next Purchase
Shopping for a new or used car is an exhausting experience, but the market is beginning to shift as supply rises and interest rates drop. The new car market may offer discounted rates and incentives to encourage sales and maintain profit margins. You should also look for deals for electric vehicles and combine savings with the EV Tax Credit.
Researching the market and your options is the best way to make an informed decision and wise investment. Explore our Lifestyle content for more tips and advice to enhance your life today!