New Car Price Trends in 2024 (May Update) (2024)

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New Car Price Trends in 2024 (May Update)? ›

New Car Prices – May 2024 Update

At the end of 2023, most experts predicted that car prices would continue to fall slightly in 2024². They also expected new car production to increase in 2024, leading to lower prices for new and used vehicles.

In 2024, consumers have more options than ever to tailor their vehicles to their preferences. This includes customizable exterior and interior options, adaptive lighting systems, and even programmable sound for electric vehicles.

The automotive supply chain will likely never look like it did pre-pandemic, but inventory levels generally recovered in 2023 and are expected to continue doing so in 2024 and 2025. Car prices remain elevated in 2024 due to inflation but are showing initial signs of decreasing as inventory stabilizes.

Prices on new cars are expected to drop in 2024 as the industry moves beyond the supply-chain issues that pushed up auto prices during the pandemic, which will gradually ease the prices on used vehicles as well. That's welcome news for car shoppers who have faced record-high prices over the past couple of years.

Auto loan rates for new and used vehicle purchases fell in the first quarter of 2024 to 6.73% and 11.91%, respectively, down slightly from the 15-year highs we saw at the end of 2023, according to Experian.

If you're looking to save money, waiting until 2024 might be a more financially savvy decision. Exploring the benefits of a used car buying can reveal substantial savings and value for money. Another advantage of waiting is the potential for improved features and upgrades.

The average monthly car loan payment in the U.S. is $735 for new vehicles and $523 for used ones originated in the first quarter of 2024, according to credit reporting agency Experian.

As independent franchises, dealers can sell the car at any price. Some dealerships and brands have developed no-haggle pricing. The price on the window is the price of the car, they say. In most cases, you'll still need to negotiate the value of your trade, the cost of financing and the price of any add-ons.

What is the future outlook for the car market? ›

Here's what to expect for the auto industry in 2024: 1. Sales of new cars should hit 15.7 million, up from 2023. Vehicle availability has steadily improved after years of shortages, so more shoppers should find a ride to suit them.

Key Takeaways. Global light vehicle sales will increase by 2% to 3% over 2024 and 2025 (to over 90 million), mainly supported by growth in Southeast Asia and India. U.S. and Europe may lag global growth, while China's long-term potential remains.

The electric vehicle (EV) revolution is well underway, and by 2025, it's expected to hit a major milestone. It's predicted that electric vehicle sales will reach over 30 million in 2025, accounting for approximately 30% of all vehicle sales. This surge will be driven by several factors.

Average Selling Prices Are Down 5% So Far in 2024 – Some Brands Are Dropping Even Faster. What vehicle are you interested in? In 2024's car market, we'll take good news where we can get it.

Experts say that 2024 will be the best year to purchase a new car since 2019. As interest rates slowly drop throughout the remainder of the year, payments will become more manageable. Don't overlook manufacturer rate promotions, as they can save you thousands of dollars.

Though inventories of new autos are still well below the roughly 4 million level that prevailed before the pandemic, analysts and dealers say the rising availability suggests that 2024 will be the most affordable year of the past five in which to buy a new car or truck.

"2024 is probably the best year since the pandemic to buy a new car," Mark Schirmer, director of industry insights at Cox Automotive, told ABC News. "2021 and 2022 were really difficult years.