👉 Update: Here’s the latest on Memorial Day car sales
In 2024, the new car market is doing something it rarely does: holding steady. Although prices are stable, they remain close to record highs. This stability comes after several years of tumultuous changes in the automotive industry, from the pandemic-driven recession to the supply chain shortages that followed. As new car price trends prove tough to forecast, keeping an eye on the market’s subtle movements becomes crucial for potential buyers and sellers alike.
Let’s delve deeper into the current state of the new car market.
New Car Prices – May 2024 Update
Which segments of new cars are experiencing price drops, and which are seeing a rise? Is now a good time to buy a new car, or is it a good time to sell? We will address these pressing questions and more.
According to recent data from Cox Automotive, the average transaction price for new cars is $47,244. That’s down 2.2% year-over-year.
| Month-Year | Average New Car Transaction Price |
|---|---|
| 1/1/2023 | $49,468 |
| 2/1/2023 | $48,558 |
| 3/1/2023 | $48,289 |
| 4/1/2023 | $48,277 |
| 5/1/2023 | $48,658 |
| 6/1/2023 | $48,671 |
| 7/1/2023 | $48,165 |
| 8/1/2023 | $48,126 |
| 9/1/2023 | $47,797 |
| 10/1/2023 | $47,936 |
| 11/1/2023 | $48,247 |
| 12/1/2023 | $48,759 |
| 1/1/2024 | $47,401 |
| 2/1/2024 | $47,244 |
| 3/1/2024 | $47,218 |
Some new car segments are seeing notable price declines in 2024, while others are holding firm. The luxury vehicle segment has experienced notable price reductions, largely due to Tesla’s aggressive pricing strategies. Tesla is now a top-10 luxury brand in America, not just the leader of electric vehicle sales. Luxury vehicle prices have dipped 7.4% YoY. Tesla’s average transaction prices (ATPs) plummeted by a whopping -20% compared to September 2022, as the brand pushes for higher sales volumes.
On the flip side, non-luxury vehicles have seen a price increase of less than 1% YoY. The average price for new non-luxury vehicles in March 2024 was $44,052.
We track used car prices weekly. See this week’s used car price update.
Negotiability Is Key
If you’re looking for the BEST deal on a new or used car, remember this: knowledge is power when it comes to negotiating car prices. When you have an understanding of local inventory dynamics, car price trends, incentives, and the negotiable aspects of a car deal, you’re better prepared to drive away proud of your deal.
Free Car Buying Help Is Here!
Ready to outsmart the dealerships? Download your 100% free car buying cheat sheets today. From negotiating a deal to leasing a car the smart way, it’s all available for instant download. Get your cheat sheets today!
2024 New Car Price Forecast: Prices to Remain High
New car prices are expected to remain near current levels as we move through 2024. In a best-case scenario, prices could trend downward slightly over the summer. For more detailed insights and predictions about the 2024 auto market, including potential wildcard scenarios that might shake up the industry, check out our 2024 car market forecast.Â
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