New automotive costs have been falling for many of 2023, with the typical new automotive promoting for $47,936 in October, Kelley Blue Ebook reported. General, new automotive costs are down 1.4% since October 2022 and three.5% since their peak in December 2022.
Will this downward development proceed into 2024? GOBankingRates spoke with David Meniane, CEO of CarParts.com, to get his predictions.
Automobile costs will seemingly proceed to lower
If automotive costs observe current tendencies, they are going to seemingly proceed to lower into 2024. Nonetheless, nothing is assured.
“It’s tough to foretell whether or not the price of proudly owning or buying a automotive will lower within the coming yr,” Meniane stated. “Final month, the typical worth for a brand new automobile was [$47,936] — a [1.4%] dip from final yr, in line with the most recent KBB knowledge. This means that new automotive costs would possibly drop in 2024.”
One issue that might result in worth drops is an oversupply of latest vehicles.
“One current report estimates that international automotive manufacturing will exceed gross sales by 6% this yr, making a surplus of 5 million automobiles that can obtain worth cuts to facilitate their sale,” Meniane stated.
Meniane stated that when you purchase in 2024 may also impact the worth you get.
“It will depend on the time of yr,” he stated. “For instance, October to January is often the most effective time to purchase a automobile, particularly throughout the month of December. When you’re a potential purchaser intimidated by the costs you’re seeing within the first half of 2024, you would possibly need to wait till the tip of the yr when producers announce massive reductions and offers.”
Extra Bang for Your Buck: These 20 Vehicles Will Final You Twice as Lengthy because the Common Car
Which kinds of vehicles will see the largest worth drops?
Meniane believes that SUVs and used sedans might see important worth decreases within the coming yr.
“Oil costs are projected to rise in 2024, which implies SUVs and different much less fuel-efficient automobiles will likely be cheaper to buy,” he stated. “Producers will use aggressive pricing to persuade customers to buy bigger vehicles, as individuals gained’t need to drive vehicles that run up a big fuel invoice. This will likely make used sedans, particularly hybrid fashions, extra reasonably priced in comparison with different cars available on the market.”
However, new EVs and hybrid vehicles will seemingly swing within the different path.
“Vehicles with superior electrical and hybrid expertise are prone to preserve and even enhance their worth factors,” Meniane stated. “Key elements like rising shopper curiosity, an growing societal emphasis on sustainability and authorities incentives for EV homeowners will contribute to steadily rising demand, which can hold EV costs secure and rising.”
As well as, any vehicles which might be reliant on semiconductor chips may even see costs remaining regular or rise, as provide shortages proceed to be a problem.
“Provide chain disruptions and shortages of semiconductor chips have affected the automotive business in recent times, driving up the worth of manufacturing and thus the price to a potential purchaser,” Meniane stated. “If these challenges persist into the following yr, sure fashions, particularly these closely reliant on digital parts, would possibly expertise worth will increase as a consequence of constrained provide and elevated worth of manufacturing.”
Ideas for automotive shopping for in 2024
When you’re planning on shopping for a automotive within the coming yr, search for methods to chop down on prices. For instance, you would possibly think about shopping for a used automotive as an alternative of a brand new one.
“Potential consumers ought to look to see if they will buy a used automotive with a dependable automotive report and elements historical past,” Meniane stated. “With current developments in sturdiness and expertise, many preowned automobiles provide wonderful efficiency at a fraction of the price.”
It’s additionally vital to be an knowledgeable purchaser when heading to the dealership.
“Ensure to do your analysis,” Meniane stated. “There’s a lot to think about when buying a automobile, and consumers ought to leverage on-line assets like automotive comparability instruments, buyer opinions and skilled opinions to take advantage of knowledgeable choice.”
Lastly, be real looking about how a lot automotive you’ll be able to truly afford and all the elements that play into that price.
“Be aware of the overall price of possession, together with upkeep, gasoline effectivity and insurance coverage charges,” Meniane stated. “Some vehicles might have a decrease sticker worth however increased long-term prices as a result of they use extra gasoline, require extra frequent upkeep or are recognized to have worse safety/anti-theft protections.”
