2024 To Mark First Decline For New Vehicle Prices in 16 Years, Yet Buyers Aren’t As Relieved - The Average Joe

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    2024 To Mark First Decline For New Vehicle Prices in 16 Years, Yet Buyers Aren’t As Relieved

    Rhea Lobo

    July 5, 2024

    If you like to drive a hard bargain, 2024 might be the year to hit the dealership. Rising car prices have kept potential buyers away for years. However, this year marks the first time since 2008 that new vehicle prices are expected to drop — thanks to restocked dealerships and stabilized supply chains.

    • As of June, the average price for new vehicles fell 3% year-over-year to ~$45K — however, monthly payments remain at a record high of $740 due to climbing interest rates.
    • Nationwide vehicle deliveries rose ~2% in the first half of the year, while dealership inventories increased 50% to ~2.7M vehicles by the end of May.

    Driving us crazy: Lower prices are a win for customers, but many Americans still find vehicle purchases unaffordable due to high interest rates. To cope, many are opting for leases with preferred pricing or longer-term loans. Around 70% of new-vehicle loans in the second quarter of 2024 are set for over 60 months. According to Edmunds’ Jessica Caldwell, “Prices likely need to fall further to bring more buyers into the market” (WSJ).

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