Will This Be a Normal Year for the 2024 Car Market?
At the beginning of the year, the Cox Automotive Economic and Industry Insights team released a projection report on the 2024 car market forecast, predicting better conditions for car buyers and increased opportunities for incentives and improved rates. Here at Twin State Ford, we’ve broken down this report to detail changes in each part of the market, from new car market trends to the impact of the electric vehicle (EV) revolution, to make it more digestible and accessible to help determine whether now is the right time to buy a new car.
2024 New Car Market Trends
While the country is unlikely to experience a recession, economic growth will continue slowly. It’s predicted that while inflation and interest rates will decline steadily, customers will still feel restricted by job and income growth, leading to a continued period of limited spending and thus further opportunity for the 2024 car market to catch up to pre-pandemic conditions. Expectations are high that as the rates continue to decline, the cost of purchasing a new vehicle will resume affordability and provide opportunities for struggling customers seeking a new automobile to re-enter the 2024 car market. Increased supply of new vehicles means new opportunities for consumers to buy at more affordable rates and prices. Projections have shown that new vehicle inventory will hit almost 3 million available units at the current rate of the 2024 car market, resuming pre-pandemic levels. With supply finally beginning to reach the level of demand, drivers can expect to see more excellent rates and sales incentives ahead to help navigate the new market landscape, along with a steady price drop. Sales incentives won’t be as high as those in 2019; however, drivers can still expect better deals than in previous pandemic years.
2024 Used Car Market Trends
Welcome to the new buyer’s market, where consumers can get better vehicle deals than in recent years. Within this market, dealerships must adapt to higher MSRPs, better infrastructure for electric vehicle sales, and the pressure of lowering prices. The 2024 car market presents an opportune time to buy used, as the margins for pre-owned cars, SUVs, and trucks will be better for dealers and provide an accessible option for customers who may still be unable to afford a new car. Drivers can expect to find better deals beginning to manifest, providing a steady transition into the new buyer’s market.
2024 Car Leasing Market
Like the used car market, drivers can expect better rates from leasing in the 2024 car market than buying a new car. For a lower cost than financing a new vehicle, buyers can lease without worrying about the effect of interest rates, with predictable payments, available warranty coverage, and greater flexibility with all the benefits of driving a car in a newer condition. This may be an excellent opportunity for drivers seeking everything they’d usually get from a new car while keeping their monthly payments low until the time is right for them to finance a vehicle in full.
Electric Car Market Update
2024 is being declared “the Year of More” because of the market pressures of the electric vehicle revolution. More demand and governmental pressures are being placed on the EV market for dealers and manufacturers to sell driver sustainability initiatives. Yet, many are finding trouble convincing the average driver to opt for electric vehicles. The automotive industry now faces the unique challenge of adapting incentives, discounts, sales, and advertising to drive consumers toward making the right choice for the environment. Where fears over range anxiety and infrastructure persist, drivers may feel relieved by the flexible option of hybrid and plug-in hybrid (PHEV) vehicles or the ability to earn up to $7,500 in Federal Tax credits.
The Return to Normal
With the steady return to normal, we can all breathe a little easier. As 2024 goes on, drivers and dealerships can expect the 2024 car market to have the best sales year experienced since the pandemic began due to increased opportunities to buy and an overall better buying process. While economic factors may still weaken the growth, things are continuing to stabilize, making this the most normal year the market has had in the past four years. At Twin State Ford, our professionals are committed to helping you find the right vehicle match for your needs and can help you easily navigate the complexities of this new car market. Visit us for a test drive today!
