High prices have been the biggest reason people have delayed new car purchases. Looking at the numbers, even though prices have gone down, they haven’t dropped significantly. In March, the ATP of a new car was $47,218, only a 1% decline over the same time last year. Supply chain improvements are behind some of these figures, with new car inventories increasing 52% from last year. At the current pace, 2024 could be the best year for new car sales since 2019.
Still, that doesn’t mean you should rush out to buy a car today. For the most part, the price you pay for a new car comes down to supply and demand. As supply chains stabilize and inventories continue to improve, dealers are likely to offer more incentives. If you can wait, it might be a good idea to do so as long as you can. However, if you must buy a car now, be sure to ask the right questions, try to find a dealer who will sell it to you at MSRP, and try to avoid dealer add-ons, like tinted windows or ceramic coating. Before making a decision to buy, it’s important to keep in mind that while the market is more favorable than it was a year ago, prices may not move much lower in 2024.
