Are you patiently waiting and hoping for car prices to drop before you can get your favorite ride? You may find this news exciting!
As reported by Kelley Blue Book, new car prices have been continuously declining in 2023. The average new car sold for $47,936 in October, marking a 1.4% decrease since October 2022 and a 3.5% drop from its peak in December 2022.
David Meniane, the CEO of CarParts.com, commented on the decline in car prices, stating, “It’s challenging to forecast whether the expenses associated with owning or buying a car will decrease in the upcoming year.
Meniane mentioned that the average price for a new vehicle last month was $47,936, marking a 1.4% decrease from the previous year, per the latest KBB data. This indicates a potential drop in new car prices for 2024”. Does this sound like the good news you want to hear?
In the past, we have provided more information about new cars, their mileage, and what to expect to help people make decisions.
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DID YOU KNOW?
An excess supply of new cars is a potential factor contributing to price reductions.
“According to a recent report, global car production is projected to surpass sales by 6% this year, resulting in an oversupply of 5 million vehicles. To facilitate their sale, these surplus vehicles will be subject to price cuts,” explained Meniane.
If you plan on getting a used vehicle as an alternative to new ones, please remember to check any used vehicle for possible damages.
When will car prices drop in 2024?
Experts suggest that the particular time of the year plays a major role in the prices of cars that can be bought or sold.
Market analysis shows that October to January is typically the best time to buy a vehicle, especially in December.
If you are a prospective buyer and they don’t seem comfortable with the mountain-high prices of the first quarter. You can relax and wait to purchase for the latter part of the year.
During the year’s final quarter, dealerships and even manufacturers usually give a discount.
Other factors that might lead to decreased vehicle prices include Economic factors such as interest rates, inflation, and consumer confidence. For example, low interest rates may encourage more people to buy cars, leading to higher demand and potentially higher prices.
The car might experience price drops.
Oil prices are projected to increase in 2024, making fuel-consuming vehicles more unattractive and hence less expensive. Used cars and sedans might also sell more; many people might even purchase most of these vehicles.
Since used car prices are likely to drop, what should a used car buyer do before buying a vehicle? Used car buyers must run a VIN check to obtain a vehicle history report.
This report will help them know about the events that have occurred in the past concerning the vehicle. For a detailed vehicle history report, kindly visit the Premium VIN tool to get top-notch historical information about any vehicle.
Users have found history reports from Prevuim VIN to be detailed and include essential information such as accidents, theft records, ownerships, insurance, loans/liens, auction/sales history, and more!
New versions or updates of popular models may lead to discounts on previous iterations as dealers make room for the latest offerings.
READ ALSO: How Many Miles Should a New Car Have?
Tips for Finding the Best Deals
- Research and compare prices from multiple dealerships.
- Consider buying during promotional periods or year-end sales.
- Negotiate with dealers to get the best price, especially if you’re willing to compromise on certain features or trim levels.
- Explore financing options and incentives offered by manufacturers or dealerships.
Top 3 Reasons for Late Year Price Drop
Outgoing Model Years: Dealerships are eager to clear out inventory of the current model year to make space for incoming new models. This means you can expect car discounts from the current year as the year ends.
Slow-Selling Models: If a particular model hasn’t been selling well throughout the year, dealerships are even more likely to offer discounts to move those units during the end-of-year sales push.
Luxury Cars: Luxury car dealerships may be more flexible on pricing towards the end of the year, especially for outgoing models.
In 2023, new car prices declined, with the average price dropping by 1.4% to $47,936, as reported by Kelley Blue Book. David Meniane, CEO of CarParts.com, noted the potential for further price drops in 2024 due to factors like an excess supply of vehicles.
Market analysis suggests that the best time to buy cars is typically from October to January, especially during December’s end-of-year sales.
Economic conditions, oil prices, and the release of new models can also influence price drops. Buyers should research, compare prices, and consider late-year discounts and promotions for the best deals on new cars.
