How Has Inflation Affected The Car Market?

Car Buying in a New Era: Inflation and Smart Strategies

Finding your dream car can be tricky in this day and age. Thanks to the lingering effects of the pandemic and rising inflation, navigating the market can be challenging. At Portsmouth Used Car Center, we get it. That's why this blog post will break down the impact of inflation and car prices, the current market picture, and, most importantly, how you can still score a great deal. Keep reading to learn the latest car inflation rate status and how Portsmouth Used Car Center can help you find your perfect vehicle!

A Shift in the Market

Used car inflation followed a different path than new car inflation in 2024. While new car price increases slowed significantly, driven by improved supply chains, used car prices peaked in early 2023. Since then, they've seen a modest decline, likely due to a combination of factors. This includes lower demand and the anticipation of more affordable new cars becoming available. The dramatic price hikes that plagued the market in 2021 and early 2022 seem to be slowing down. This positive shift is primarily due to an easing of global supply chain issues, especially the chip shortage that crippled production. As we and other dealerships see more inventory arriving, competition is naturally heating up, creating a more buyer-friendly environment. While the price surge is easing, new cars remain more expensive than pre-pandemic levels. J.D. Power reported a 4.2% average cost increase compared to January 2023. Additionally, surging gas prices and rising interest rates continue to make car ownership a significant expense, leading to an overall slowdown in car sales. This, in turn, has a ripple effect on car prices and inflation. We may be biased, but we believe now is the best time to buy used in the age of rising inflation and car prices on newer models!

Inflation and the Price of Your Next Car

Sure, supply chains are improving, but don't let your guard down. Inflation is still playing a major role in car prices. It's not just a chip shortage anymore. Inflation has driven up the cost of everything from raw materials like steel and rubber to parts and even factory worker wages across the entire auto industry (and many others!). These increased costs get passed on to you, the consumer, and are estimated to be responsible for roughly half of the recent price hikes on new cars. But wait, there's more to the story! Not all price increases are purely inflation's fault. Automakers are also investing heavily in exciting new technologies like electric vehicles and advanced driver-assistance systems. While these innovations contribute to higher sticker prices upfront, they ultimately benefit you by offering greater fuel efficiency, improved safety, and a more enjoyable driving experience.

Conquering the Car Market: Finding Deals Despite the Climb

The car market might feel like a mountain climb right now, but fear not, summit-seekers! There are still fantastic deals to be found on new cars. Here at Portsmouth Used Car Center, we're here to help you navigate the terrain and find the perfect vehicle that fits your budget. Here are some key strategies to help you conquer the 2024 car market:

Become a Market Master: Knowledge is your compass. Research the specific model you're interested in and its typical market value. This equips you to compare deals and avoid overpaying.

Explore Our Pre-Owned Gems: Don't discount the pre-owned market. Excellent options abound, especially for well-maintained, late-model vehicles. We have a treasure trove of used cars waiting to be discovered, not to mention the largest inventory in the New England area!

Be More Flexible: Having a dream car in mind is great, but remaining open-minded can unlock more deals in the time of inflation and car prices rising. Consider different models or features. You might be surprised by the hidden gems you find!

With these tips and our help at Portsmouth Used Car Center, you'll be cruising toward your perfect car purchase in no time!

Don't Let the Market Hold You Back: We've Got You Covered!

Look, inflation, car prices, and supply chains are wild, unpredictable rides—and we can't control that. But what we can control is making your car-buying experience smooth and stress-free here at Portsmouth Used Car Center! Forget hidden fees and last-minute surprises. With our No Dealer Fees Guarantee, we offer ultimate transparency regarding pricing. Whether you're set on a Ford Blue Advantage model or open to a high-quality pre-owned gem from various makes, we have an extensive selection to choose from. We're confident you'll find the car that checks all your boxes without breaking the bank. Finding the car you deserve shouldn't feel impossible. With our wide variety of options and commitment to fair pricing, we're here to help you drive away happy, both with your car and the price tag.

Shop Pre-Owned

The car market might be unpredictable with inflation and car prices, but finding your perfect vehicle doesn't have to be. At Portsmouth Used Car Center, we offer a powerful combination of exceptional value, a diverse selection, and expert guidance. We're confident we can help you navigate the current market landscape and discover the pre-owned car that perfectly fits your needs and budget. Contact Portsmouth Used Car Center and get ready to experience the pre-owned power that puts you in control of your car-buying journey!