Should You Buy a New Car in 2024? (2024)

FAQs

Should You Buy a New Car in 2024? ›

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.

"2024 is probably the best year since the pandemic to buy a new car," Mark Schirmer, director of industry insights at Cox Automotive, told ABC News. "2021 and 2022 were really difficult years. Dealers are talking about discounts again ... this was not happening 18 months ago.

Prices on new cars are expected to drop in 2024 as the industry moves beyond the supply-chain issues that pushed up auto prices during the pandemic, which will gradually ease the prices on used vehicles as well. That's welcome news for car shoppers who have faced record-high prices over the past couple of years.

New-vehicle average transaction prices (ATP) in April increased month over month for the first time in 2024, rising to $48,510, a 2.2% jump from the revised March price of $47,481. Incentives fell back to 6.3% of ATP.

As mentioned, October through December is generally the best time to purchase a car. According to Edmunds, "if you need a car in October and want to get the best deal, you might want to wait until December, even though you'll run the risk of having fewer cars to choose from."

For people waiting for rates to come down to make a purchase, a significant rate drop or series of rate drops could provide an opportunity to move forward with buying a car. For those holding onto loans with higher rates, 2024 could be a good chance to refinance to lower interest rates and a more affordable loan.

Despite that, prices are still higher than they should be, as a new iSeeCars study found that the average new car is priced above MSRP, though they're slightly less painful than they were a year ago.

May is typically a good month for sales volume, and May 2024 did not disappoint, with good volume and the best sales pace so far in 2024 despite stubbornly high auto loan rates. The Cox Automotive full-year forecast for 2024 stands at 15.7 million and will be reviewed at the end of June.

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.

What are the car trends in 2024? ›

Key Automotive Trends in Q1 2024

The shift from a seller's market to a buyer's market is here, spurring adaptability in dealership processes and strategies. Products per deal increase while consumer affordability concerns remain. Leasing gains momentum due to attractive OEM offers and government EV tax credits.

After a year of supply shortages and climbing borrowing costs, 2024 is shaping up to be a better time to buy a car. The average transaction price for a new car in the U.S. in February was $47,244, down 2.2% from February 2023. That's also down 5.4% from the market peak in December 2022, according to Kelley Blue Book.

As new models are introduced, dealerships often offer discounts on previous year models to make room for the new inventory. If you're looking to save money, waiting until 2024 might be a more financially savvy decision. Exploring the benefits of a used car buying can reveal substantial savings and value for money.

However, you can use the guideline of 2 or 3% on less expensive brands, and 5 to 10% on luxury brands as a rule of thumb. Regardless of if you're buying a Kia or a Mercedes, the reality is there isn't too much room to work with when just looking at the mark up. This is where factory incentives come into play.

The best time to buy a car has several answers. Your best bet is to buy between October and January 1st. December is particularly ripe for deals, discounts, rebates and other incentives as well. This is because car salespeople are aggressively working to meet their monthly, quarterly and yearly quotas.

The average auto loan interest rate in the first quarter of 2024 was 6.73% for new vehicles and 11.91% for used vehicles, according to Experian. However, the rate you receive on a car loan will depend on your credit scores. The higher your scores, the lower your auto loan rate.

The holiday weekend can be a great time to buy a new or used car. Edmunds experts share that after years of less-than-enticing deals, drivers can head to dealerships and have better luck in an otherwise challenging market.

How Long Will a Car Last? Typically, a car will last from 200,000 to 300,000 miles. Or, in terms of time, from 15 to 22 years. If those numbers raised your eyebrows, let us add that multiple variables impact a car's life expectancy.