New car prices have been on a downward trend for most of 2023, and this trend is expected to continue into 2024, according to industry expert David Meniane, CEO of CarParts.com. While there are no guarantees, recent data and market conditions suggest that car prices will likely decrease further next year.
The average price for a new car in October was $47,936, representing a 1.4% dip from the previous year, as reported by Kelley Blue Book. These figures indicate that new car prices might continue to drop in 2024. One factor that could contribute to this decline is an oversupply of vehicles in the market. A recent report estimates that global car production will exceed sales by 6% in the current year, resulting in a surplus of 5 million vehicles. To facilitate the sale of these excess cars, manufacturers are expected to offer price cuts, making new car purchase more affordable.
Timing also plays a role in the price you get for a new car. Meniane advises potential buyers to consider purchasing a vehicle between October and January, with December being the ideal month. This period often sees manufacturers announcing large discounts and deals, making it a favorable time to buy a vehicle.
When it comes to the types of cars that will see the biggest price drops, Meniane points to SUVs and used sedans. As oil prices are projected to rise in 2024, less fuel-efficient vehicles like SUVs will become less expensive to purchase. Manufacturers are likely to employ competitive pricing to entice buyers into purchasing larger vehicles, as people will be more conscious of fuel costs. Consequently, used sedans, especially hybrid models, are expected to become more affordable compared to other automobiles on the market.
On the other hand, new electric vehicles (EVs) and hybrid cars are likely to maintain or increase their price points. Factors such as growing consumer interest, societal emphasis on sustainability, and government incentives for EV owners contribute to a steadily growing demand, which will keep the prices of these vehicles stable or even rising. Additionally, cars reliant on semiconductor chips may see steady or increased prices due to supply shortages and the increased cost of production.
For those planning to buy a car in 2024, Meniane provides some helpful tips. Consider purchasing a used car with a reliable car report and parts history to cut down on costs. Doing thorough research using online resources such as car comparison tools, customer reviews, and expert opinions is crucial in making an informed decision. It’s also important to be realistic about your budget and consider the total cost of ownership, including maintenance, fuel efficiency, and insurance rates.
Q: Will new car prices continue to decrease in 2024?
A: According to industry expert David Meniane, new car prices are expected to continue their downward trend in 2024.
Q: Which types of cars will see the biggest price drops?
A: SUVs and used sedans are likely to experience significant price decreases in 2024, while new EVs and hybrid cars may maintain or increase their price points.
Q: What factors could contribute to the decline in new car prices?
A: An oversupply of vehicles in the market, rising oil prices, and competitive pricing strategies by manufacturers are some of the factors that could lead to a decrease in new car prices.
Q: When is the best time to buy a new car in 2024?
A: According to Meniane, the period between October and January, with December being particularly favorable, is typically the best time to purchase a new car due to manufacturers announcing large discounts and deals.
Q: What tips does Meniane offer for car buying in 2024?
A: Meniane advises potential buyers to consider purchasing a used car with a reliable car report and parts history, to do thorough research using online resources, and to be realistic about the total cost of ownership.