If you’re thinking about buying a new car in 2024, the good news is that it could be a buyer’s market with production finally getting back to normal.
However, the used car market is still being affected by the decrease in new car production over the last few years.
Looming Shortage
Like many other businesses, car dealerships are recovering from the last few years of supply line problems and other shortages. While the market for new cars is getting better, the market for used cars faces a looming shortage of late-model cars. This will potentially have buyers looking at new cars or models they wouldn’t otherwise look at.
As these larger market trends take effect, you might be thinking as a buyer that it’s a good time to look for a deal. In fact, there are some good vehicles that are experiencing a decrease in demand. Not everything is marked up and expensive. Some models and vehicle types offer more room to negotiate.
Right now, it looks like 2024 could be a promising year for new car shoppers. If you want to buy new, there are a lot of positive factors, including an increase in inventory, and a decrease in buyer demand. The latter factor has induced car dealerships to offer deals and incentives.
Models and Types to Haggle On
One good way to score a deal is by looking at models and types of vehicles that are less popular. For example, it’s much more difficult to find a deal on a new truck or SUV, especially if it’s enjoyed a recent redesign. Models like the Ford Bronco, Toyota 4Runner, Chevy Colorado, and GMC Canyon are very popular with new car shoppers right now.
However, there are a lot of SUVs not hit with high demand. The Ford Edge, Jeep Compass, and Mercedes EQB are less popular in their respective classes. Surprisingly, the Nissan Rogue is also out of demand right now. It’s not as flashy as some of its rivals, but it’s a solid performer with a comfortable interior.
Good Time to Buy an EV
Reports are circulating that EV demand has gone way down since the latter part of last year. This is good news if you’re thinking about buying an EV right now. There’s roughly a 137% increase in EV inventory at car dealerships right now, but they’re sitting on the lot for a long time. Both prices and demand for EV models have dropped.
Car dealerships are offering incentives to recapture interest in EV models. Certain EV models and buyers can qualify for up to $7,500 in federal EV tax credits as well. Much of the interest in EV models is coming from used models. Tesla models and the Ford F-150 Lightning are particularly popular.
If you’re thinking about buying a used car, the news isn’t quite as good. This is especially true if you’re looking for a late-model used car. Leases have gone down over the last few years, and the late-model used market is usually padded by cars coming off leases. This has made the used market overall more expensive.
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