New and used car purchases were expensive for drivers this year, as limited inventory and high borrowing costs affected affordability. “Interest rates have taken such a toll on purchasing power,” said Ivan Drury, director of insights at Edmunds.
Yet, consumers might begin to see lower prices in 2024, experts say. Improvements in the supply chain ought to bolster inventory, while interest rate cuts are on the horizon.
“It’s going to be a much better time for a consumer to buy a car in 2024 vs. this year,” said Paul Waatti, an industry analyst at market research firm AutoPacific.
November was the third consecutive month when the average transaction price for a new car was lower than last year. The average new car sold for $48,247 in November, an increase of less than 1% from October, but a 1.5% decline from last year, according to data from Kelley Blue Book.
Edmunds puts the November average at slightly less, $47,939, per data it provided to CNBC.
In 2023, low inventory in a high-demand market left little room for discounts. That is likely to change next year as dealers will be motivated to sell more cars on the lot, experts say. “As supply goes up, we tend to see more incentives being thrown on the hoods,” said Waatti.