Will car prices drop in the US in 2024?
If buying a new car is in the works for you this year, it could be a good time to make the big purchase. However, don’t expect prices to drop too much.
New year, new…car? If acquiring a vehicle ranks high on your agenda for things to do in 2024, it could be a good time to get that upgrade.
The car industry went through an upheaval that began during the covid-19 pandemic when the supply chain was disrupted, leading to a lack of vehicles to purchase as well as prohibitive prices.
Consumers then had to deal with record inflation levels, which led to belt-tightening and perhaps the postponement of plans to get a new car.
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Factors that deterred prospective car owners in 2023
New car prices fell for most of last year, but insufficient inventory and steep borrowing costs left buyers unable to afford the price tag, whether the vehicle was brand-new or used.
This year, those looking to buy may have better prospects, as interest rates have declined, and inventory has increased.
If the cost of buying a car follows recent patterns, prices may continue to go down this year.
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Will car prices drop in the US in 2024?
According to GoBankingRates, the market is likely to stabilize in 2024 after undergoing massive fluctuations over the past three years. However, big changes aren’t expected, and it is difficult to forecast exactly if car prices will truly go down this year.
One aspect that could lead to lower prices is an oversupply of new cars, per GoBankingRates. Industry experts predict that global supply will exceed demand by 6% due to increased production, bringing manufacturers to lower prices to encourage consumers to buy the surplus.
Bigger vehicles like SUVs and used sedans could see their prices drop because oil prices are expected to go up this year. For the same reason, more fuel-efficient vehicles such as electric and hybrid cars could end up becoming more expensive due to expected higher demand.