In The Market For A New Car? The Time Might Finally Be Right To Go Shopping.

A combination of inflation, pent-up demand, and supply chain interruptions sent the cost of both new and used vehicles soaring during the post-pandemic period. But there are currently some signs that those prices are starting to come back down to something approaching normal.

Discounts aplenty

Factories are operating at full capacity again after months of COVID-19 shutdowns and there’s no longer a shortage of new models on dealership lots. If anything, the current inventory is sitting on the showroom floor too long for comfort, meaning savvy buyers can find some pretty intriguing deals.

But if you’ve been aiming to scoop up a car and resell it for a profit, those days seem to be over.

Here’s some evidence backing up the hype:

• Last month, automakers had about 1 million more vehicles in stock than a year earlier.
• Stellantis is offering incentives worth as much as $11,000 on models like the Dodge Charger.
• Tesla has spent more than a year cutting sticker prices on its lineup of electric vehicles.

And while desperate shoppers were paying big bucks for used vehicles not too long ago, recent stats show pre-owned car prices dipped by about 7% during the month of April.

Not all good news

While the general vibe might be that car shoppers are in a much better position than they were at any point during the past three years, there’s a big caveat: interest rates.

In April, the typical rate for used cars was 11.6% and the average monthly payment for a new vehicle hovered around $735.

But once again, automakers can sweeten the pot by offering incentives on new inventory to reduce monthly costs and interest rates — and they’re doing exactly that on remaining 2023 models and other vehicles that have been sitting on the lot too long.

Chris Agee June 4th, 2024

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