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.

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.

In 2024, electric car sales in the United States are projected to rise by 20% compared to the previous year, translating to almost half a million more sales, relative to 2023. Despite reporting of a rocky end to 2023 for electric cars in the United States, sales shares are projected to remain robust in 2024.

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.

Hold off on your purchase until the Memorial Day Weekend.

Like clockwork, used car prices go up during tax season due to the increased buying power of consumers thanks to their tax refunds. This increase in used car prices is more significant for lower-end vehicles.

The month of May is another great time to buy a car because it's when dealerships start the summer buying season.

In addition to certain times of the week or holidays, some months are better to buy or lease new vehicles or purchase used cars than other months. In general, May, October, November and December are the best months to visit the car dealership.

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.

Traditionally, new model year vehicles start coming out in the fall of the previous year. For example, a 2025 model will typically debut in the fall of 2024 — and dealerships usually want the old stock gone before the new model arrives. But that doesn't always work out.

Are new car sales down in 2024? ›

The first quarter of 2024 reports a slight increase in overall registrations at . 7 percent (the sixth consecutive quarterly increase) in the State, posting 431,638 new sales. This figure is in contrast with the Nation's 9.6 percent improvement.

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.

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.

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.

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.