Analysis on Car Market Trends 2024
Cox Automotive Chief Economist Jonathan Smoke says 2024 will be the best year for consumers to buy a new car since before the pandemic. New vehicle supply increases, transaction prices come down, automakers are expected to offer more deals, and interest rates should ease.
Inventory became a big factor during the COVID-19 pandemic due to supply chain issues impacting availability of semiconductors and automotive computer chips. This led to higher vehicle prices. Experts don’t expect costs to return to pre-pandemic levels soon. However, some say 2023 was positive when it comes to availability.
Outlook and Predictions for 2024
An increase in inventory will likely lead to more discounts, lowering prices. Electric vehicle prices are expected to go down, affecting the market. Dealerships will have to get creative selling them. More models available will likely lead to incentives and discounts. EV sales are expected to exceed 2023’s 1 million units sold.
Market Forecasts and Sales Projections
Bureau of Labor Statistics reports that it costs 17% more right now to repair a vehicle than it did the same time last year. Car insurance prices are up 19% over the past year and are unlikely to come down in 2024 due to various reasons.
Positive Changes Anticipated in 2024
New vehicle inventory is expected to reach pre-pandemic levels at nearly 3 million units in 2024. This increased availability is expected to bring better deals, more options, and more efficient car buying processes at dealerships.
Insights into Car Sales Numbers
Edmunds forecasts 15.7 million new vehicle sales in 2024, a 1% increase from 2023. Cox Automotive expects new-vehicle sales to increase less than 2%, finishing at 15.6 million. Retail new-vehicle sales are predicted to remain mostly flat, while fleet sales recover from the 2023 lull and continue to improve.
Evolving Automotive Industry Trends
Rising interest rates may squeeze consumer budgets, making affordable monthly payments challenging. The automotive industry is expected to grow by 2% over 2024, with 15.7 million new vehicle sales and 36.2 million used vehicle sales, according to Cox Automotive.
Global Perspective on Auto Sales
Global vehicle sales growth forecasts are 5.1% in 2023 and 3.3% in 2024, with automakers anticipating a highwater mark of 90 million+ sales in 2025.
Impact of Technology on Auto Sales
New vehicle tech impacts 2024 auto sales, with advancements in semi-autonomous vehicle technology expected to bring new models to market by 2024.