How Is the Car Market Right Now? Find Out Here!

Is now a good time to buy a car? With prices dropping and inventory levels rising, there are definitely opportunities. However, high interest rates and other market variables make it important to consider all factors. Our article will guide you through the current market landscape to help you make an informed decision on whether 2024 is a good year to buy a used car. Keep reading as we go through the state of the automotive climate, and visit Portsmouth Used Car Center to shop our pre-owned inventory!

Key Takeaways

• Car prices are still high but are improving with increased inventory and better deals expected in 2024.
• Used cars are becoming more affordable, but new cars offer advanced features and reliability, making the choice dependent on personal priorities.
• Interest rates and financing options are crucial in determining the total cost of a car, with pre-approval and good credit scores helping secure better deals.

Current Market Overview

Today’s market is a mixed bag for car buyers. While the average transaction price of new vehicles has dropped slightly from its peak, new car prices still hover around a high level. This slight relief in prices comes amid improved new vehicle inventory, which has increased compared to the previous year. The days’ supply for new vehicles has also reached a higher level, indicating a better selection for car buyers. Despite these improvements, the market isn’t without its challenges. High prices and vehicle shortages continue to be a significant concern for car shoppers. However, the increasing new vehicle supply suggests that dealerships have more cars to offer than in previous years. This boost in inventory could lead to more competitive pricing and better deals for those looking to buy a used car. Sales volume also reflects a healthier market, with a significant number of units sold recently and an expected total of over 16 million new car sales by the end of the year. These figures indicate a robust demand and a market slowly stabilizing after the disruptions caused by the pandemic. For car buyers, this means even more options and potentially better prices as dealerships strive to move their stock. Although, no matter how the car market is doing, you can rely on Portsmouth Used Car Center’s No Dealer Fee Guarantee. The used car market is especially booming and we have the inventory to prove it!

Things You Should Know Before Buying A Car In 2024

Before you head to the car dealership, there are several critical factors to consider in 2024. First, negotiating on aging inventory can be a savvy move. Many dealers are keen to sell older stocks due to high carrying costs, which can translate into better deals for you. Additionally, knowing your credit score and financial limits is crucial, especially with auto loan rates averaging over 10% APR. Car prices have been influenced by various factors, including improved supply chain conditions, which are expected to bolster vehicle inventory in 2024. This means more cars will be available, potentially leading to lower prices and more choices for car buyers. However, it’s also important to consider the potential for insurance premiums to increase by 7% in 2024, so getting an insurance quote before making a purchase is essential. Lastly, the anticipated decline in interest rates might make 2024 a better time to buy a car compared to previous years. Lower interest rates could reduce your monthly payments and make car purchases more affordable. By staying informed about these factors, you can navigate the car market more effectively and secure the best possible deal. To learn more about preparing to buy a vehicle, read our blog!

Is It Better To Buy A New Or Used Car In 2024?

The age-old question “is now a good time to buy a car?” remains relevant in 2024. On one hand, purchasing a used car typically involves significantly less upfront payment compared to a new car. Used car prices are generally lower, making them an attractive option for budget-conscious car buyers. Additionally, used car loans often come with lower Annual Percentage Rates (APRs) and more favorable loan terms. However, new cars have their own set of advantages. They come with the latest technology, safety features, and manufacturer warranties, providing peace of mind and protection. New car prices remain high, but the benefits of owning a new vehicle, such as advanced features and reliability, can sometimes outweigh the costs for some buyers. Ultimately, the decision between a new and used car depends on your budget, preferences, and needs. Car shoppers should weigh the pros and cons of each option, considering factors like upfront costs, long-term value, and personal priorities. Whether you choose a new or used car, being informed about market conditions and financing options will help you make the best choice. Wondering if you should opt for new or used? Click here to read more!

Used Car Financing Tips For 2024

Securing the best financing deal for a used car in 2024 requires careful planning and smart strategies. Start by obtaining preliminary approval for financing, which gives you a clear understanding of your budget and enhances your negotiating power at the dealership. A substantial down payment can also lower your monthly payments and increase your leverage during negotiations. Using online platforms can provide greater transparency and a wider range of options when purchasing a used car. Certified pre-owned vehicles are worth considering, as they undergo rigorous inspections and meet high-quality standards, offering additional peace of mind. We offer plenty of MotorTrend® and Ford Blue Advantage vehicles that undergo rigorous inspection before hitting the lot. Additionally, obtaining a detailed vehicle history report is essential to uncover a car’s past condition and maintenance history, helping you avoid potential issues. By being well-prepared and informed, you can navigate the used car market more effectively and secure a financing deal that fits your needs and budget. Take a look at our more in-depth used car financing tips here!

2024 Car Market Forecast

If you’re pondering the question, “Is now a good time to buy a car?” you’ll need to be aware of the current forecast. The car market in 2024 is expected to experience fluctuations influenced by various factors. Here are some key points to consider:

• Economic expansion is anticipated to be constrained, leading to slow growth in the new, used, and wholesale auto markets.
• However, new-vehicle inventory is projected to return to pre-pandemic levels.
• This could result in downward pressure on transaction prices.

Incentives and discounting on new and used vehicles are expected to increase, making 2024 a potentially favorable year for car buyers. Electric vehicle sales are also forecasted to exceed the 1-million-unit record set in 2023, indicating a growing interest in sustainable transportation options. Overall, 2024 is anticipated to be the best year for car buyers since the pandemic due to better inventory and improved discounting. To learn more about the upcoming car market forecast, read our blog here!

How Has Inflation Affected The Car Market

Inflation has had a significant impact on both new and used car markets in 2024. Here are some key points to note:

• New car price increases have slowed significantly due to improved supply chains.
• Used car prices peaked in early 2023 and have seen a modest decline since then.
• This decline is likely due to a combination of lower demand and the anticipation of more affordable new cars becoming available.

Despite the easing of inflationary pressures, car prices remain higher than pre-pandemic levels. The market’s unpredictability can be challenging for car shoppers, but finding the perfect vehicle doesn’t have to be. By staying informed about market trends and being strategic in your search, you can still secure a great deal on your next car. Learn more about inflation’s impact on the automotive market on our blog!

Will Car Prices Drop In 2024?

Car prices have been on a rollercoaster ride in recent years, and 2024 is no different. Used car prices surged during the COVID-19 pandemic but have since begun to decline. Although they decreased in 2023, used car prices remained higher than pre-pandemic levels. The average price of a used car fell by 4.4% at the end of 2023 compared to the previous year, and industry experts predict a further decline of up to 14% by the end of 2024. The increase in new vehicle sales in 2024 is expected to boost the supply of available used cars, potentially leading to lower prices. However, high interest rates and ongoing high prices may keep some consumers out of the used car market despite the higher inventories. Keeping an eye on market trends and being patient can help you find the best deals as prices continue to fluctuate. Discover more on if car prices are predicted to drop over on our blog.

Used Car Market Dynamics

Wondering if now is a good time to buy a used car? The used car market in 2024 is experiencing an interesting dynamic. Here are some key points to note:

• Retail used car prices are declining, influenced by high interest rates and attractive new car incentives.
• Prices have come down from their pandemic peaks but are still higher than before the pandemic.
• The market remains unpredictable, with expectations for prices to fall further in the coming months.

The average used car listing price has seen some fluctuations, reflecting changes in the market. Older used cars are seeing different trends compared to newer used cars due to varying demand levels. However, some used cars are still selling at prices that may seem unexpected, highlighting the complexities of today’s market.

Interest Rates and Financing

Rising interest rates have made the cost of borrowing money go up, prompting automakers to offer more attractive financing options. Interest rates can significantly impact long-term vehicle costs, making it wise to wait for rates to drop if possible. For used car loans, rates vary based on credit scores, with rates as low as 6.80% for high credit scores and up to 21.57% for lower scores. Interest rates for new car loans are generally lower than used car loans, ranging from 5.38% for high credit scores. However, securing a good auto loan often depends on having a strong credit score. Automakers offer attractive financing deals, such as low APR rates, to counteract rising interest rates and encourage sales. Arranging financing before shopping for a vehicle can help you negotiate more effectively at the dealership. Getting pre-approved from lenders allows you to lock in your rate before shopping for a car, providing a set period to compare vehicles and find the best deal, especially for used cars where rates can be more variable. Need help figuring out your financing options? Fill out an application today to get pre-approved!

Preparing to Buy a Car

Preparation is key when it comes to buying a car. First, reviewing your credit report and creating a plan to improve your credit score can increase your chances of securing better financing deals. Borrowers with credit scores of 670 or higher generally qualify for auto loans with the most attractive terms. Shopping around with at least three lenders and getting prequalified can also help you find the best deal on an auto loan. Setting a budget is crucial. Experts recommend that your monthly car payments should not exceed 10% to 15% of your monthly take-home pay. Researching potential makes and models based on criteria like fuel economy, safety, and reliability can help you narrow down your choices. Once you’ve identified a few options, test driving the cars is essential to check for any damage, strange sounds, and operational features.

Is Now a Good Time to Buy an Electric Car?

Deciding to buy an electric car in 2024 involves several considerations. Here are some key points to keep in mind:

• EV sales are forecasted to make up a larger portion of the US vehicle market by the end of 2024 compared to last year.
• Tax incentives from the Inflation Reduction Act are limited to certain EVs, impacting the number of eligible models.
• However, many of the excluded EVs still qualify for discounts when leased due to exemptions in the Act’s rules.

Consumers can now apply their full federal tax credit right away at dealerships, potentially reducing financing costs. Falling EV prices combined with federal and state incentives could allow customers to buy an EV at a lower cost. Additionally, major automakers have struck deals to enhance charging options for EV owners. With these factors in mind, 2024 could be a good time to consider going electric!

Summary

In summary, the car market in 2024 presents a dynamic landscape with both challenges and opportunities. Improved new vehicle inventory and increasing incentives make it a potentially favorable year for car buyers. Used car prices are declining but remain higher than pre-pandemic levels, while electric vehicles continue to gain traction with growing incentives and infrastructure improvements. Whether you are considering a new, used, or electric car, staying informed about market trends, financing options, and inventory levels will help you make a well-informed decision. By preparing adequately and keeping an eye on market developments, you can navigate the car market in 2024 and find the best deal for your next vehicle.

Shop Portsmouth Used Car Center

Still wondering if now is a good time to buy a car? While the new car market faces uncertainties, Portsmouth Used Car Center offers a welcome alternative. We have a wide selection of reliable pre-owned vehicles at competitive prices, allowing you to find the perfect car without the new car wait times or price hikes. Whether the market improves or not, you’ll be cruising in confidence behind the wheel of a fantastic car, with no dealer markups from Portsmouth Used Car Center. Explore our pre-owned inventory now to find your next vehicle, and visit us for a test drive!

Frequently Asked Questions

How do rising interest rates affect car purchases in 2024?

Rising interest rates can lead to higher borrowing costs, but automakers may offer more appealing financing options to offset these increases.

How have used car prices changed in 2024?

Used car prices have been slowly declining in 2024, but they remain higher than pre-pandemic levels.

What factors should I consider before buying a car in 2024?

Before buying a car in 2024, consider vehicle availability, potential markups, financing options, and insurance premiums. Also, check your credit score and get pre-approved for a loan to negotiate better deals.

How can I get the best financing deal for a used car?

To get the best financing deal for a used car, obtain pre-approval, make a substantial down payment, and consider certified pre-owned vehicles. Also, use online platforms for greater transparency and more options.

Should I Buy a Car Right Now?

Deciding whether to buy a car right now depends on several factors. If you’re looking for a new car, the increased inventory and upcoming incentives in 2024 suggest that waiting could yield better deals. For used cars, prices are declining but remain higher than pre-pandemic levels, so patience might pay off. Ultimately, assess your personal needs, financial situation, and market conditions to make the best choice.

SHOP NOW