Yahoo Autos Will car prices drop in 2024? Here’s what an auto expert predicts
New car prices have been falling for most of 2023, with the average new car selling for $47,936 in October, Kelley Blue Book reported. Overall, new car prices are down 1.4% since October 2022 and 3.5% since their peak in December 2022.
Will this downward trend continue into 2024? GOBankingRates spoke with David Meniane, CEO of CarParts.com, to get his predictions.
Car prices will likely continue to decrease
If car prices follow recent trends, they will likely continue to decrease into 2024. However, nothing is guaranteed.
“It’s difficult to predict whether the cost of owning or purchasing a car will decrease in the coming year,” Meniane said. “Last month, the average price for a new vehicle was [$47,936] — a [1.4%] dip from last year, according to the latest KBB data. This suggests that new car prices might drop in 2024.”
One factor that could lead to price drops is an oversupply of new cars.
“One recent report estimates that global car production will exceed sales by 6% this year, creating a surplus of 5 million vehicles that will receive price cuts to facilitate their sale,” Meniane said.
Meniane said that when you buy in 2024 will also have an effect on the price you get.
“It depends on the time of year,” he said. “For example, October to January is typically the best time to buy a vehicle, especially during the month of December. If you’re a prospective buyer intimidated by the prices you’re seeing in the first half of 2024, you might want to wait until the end of the year when manufacturers announce large discounts and deals.”
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