Predicting the Car Market in 2024

Since the beginning of the pandemic, the automotive world has been shaken by shortages, supply chain disruptions, and increased vehicle prices. Car supply and demand drastically shifted, with less supply to meet the overall market, affecting the cost of buying a new or used vehicle. This has left many consumers concerned about whether to wait to buy a car and wonder, “Will car prices drop in 2024?” At Twin State Ford, we understand the pressures drivers have been experiencing and want to alleviate concerns by providing more information about the current market forecast and what’s expected of car prices in the future. Our automotive experts have kept up with the changing trends and are ready to work with you as the market improves. Visit us today at Twin State Ford! 

What to Expect From Car Prices in 2024?

While no one can predict the future, much evidence suggests the automotive market is headed for a smooth recovery. With the increase in new vehicle production and a stabilizing supply chain, new car prices are very likely to drop in 2024. Since 2022, car prices have decreased by 5.4%, and manufacturers and dealerships are beginning to include incentives and deals to help customers. Supply is also increasing, with plenty of new models hitting the market. Will car prices drop in 2024? It’s predicted that the total count of new dealership inventory throughout the country will reach three million available vehicles, close to the four million available before the pandemic, likely to improve car prices substantially. However, while inflationary vehicle prices are beginning to decline, interest rates are declining much slower, putting a bit more pressure on consumers who feel restricted by their incomes and job stability. Some dealers are offering lower APR rates, expecting that car prices will drop in 2024, and other incentives to help make vehicles accessible to the general public again, which is positively predicted to make buying a new car more possible for many.

Will Used Car Prices Drop in 2024?

Consumers will certainly have an excellent time browsing pre-owned inventory, as many dealers need to make room for new inventory to arrive and are offering incentives and deals to move stock. For those asking “Will car prices drop in 2024?”, the used car market will be a saving grace for many. Dealers are also in a better position with their margins, so selling used cars to customers is also advantageous. This is an excellent opportunity for shoppers to take advantage of the used car market if they require a reliable pre-owned vehicle. 

Will Car Lease Prices Go Down in 2024?

Drivers opting into a lease will find they have a similar advantage as used car shoppers, as leasing offers drivers freedom from being affected by interest rates. Leases are tethered to the price of the vehicle and provide reduced monthly payments, so as prices decline, drivers can benefit from a lease arrangement by avoiding interest rates and receiving a lower monthly payment overall on a newer car. Leasing a vehicle is an excellent alternative, especially in a market where it is likely we will see car prices drop in 2024. Drivers will also have the flexibility of not owning their vehicle, so if they would like to buy a car when prices are more reasonable, eventually, they can do so with help from a professional.

The Future of the Car Market

Will car prices drop in 2024? The car market is steadily beginning to enter a buyer’s market, meaning it’s a great time for drivers to start browsing for their next car, whether for now or in the future. No one can say whether we will see car prices drop in 2024, however, based on current trends, the future looks promising for many shoppers and dealers. Visiting a dealership to view lineups, speaking with automotive professionals, and taking test drives can be an excellent way to know the new vehicles on the market and learn more about the right buying time. It will take more time for the car market to reach the same pricing level as pre-pandemic, however, with the rapid increase in inventory, drivers can look forward to seeing pricing start to drop and take advantage of the incentives available.