Over the past few years, new vehicle prices have skyrocketed to new levels amid numerous supply chain shortages and other production-related issues that caused inventory levels to plummet to new record lows. Over the course of 2023, that situation did improve substantially, however, as shortages eased and inventory levels have rebounded in a big way. Regardless of this and higher interest rates, Edmunds is predicting that new vehicle prices will remain steady in 2024, however.
Edmunds is forecasting that 15.7 million new vehicles will be sold in 2024 – a one percent increase over its estimate of 15.5 million new vehicle sales in 2023. Additionally, the automotive research company believes that new vehicle prices will plateau in the coming year following years of aggressive increases.
In fact, Edmunds believes that we’ve already reached the peak of new vehicle pricing as those figures continue to decline and incentives return to the market. This means good buying opportunities for those willing to scoop up leftover 2023 models, though it will still be difficult to find more affordable options as vehicles transacting below the $50K mark are selling in just 30 days, on average, compared to vehicles priced above that threshold at 47 days.
“2023 experienced improved inventory levels from pandemic-era lows combined with pent-up demand to deliver strong sales estimated up 12.7 percent year over year,” said Jessica Caldwell, Edmunds’ head of insights. “While the year ahead holds the promise of further increased inventory and enticing deals that consumers have eagerly awaited, 2023’s high interest rates are expected to linger, provoking conflicting market dynamics. Automakers specifically will weigh one other key consideration in 2024: Are they satisfied with this newly established supply-demand equilibrium, or are they willing and able to push sales volumes closer to prepandemic norms?”