Car Prices Are Finally Dropping – Here’s the New Average
Car and truck prices are finally coming down in the United States. It’s about time. I was so lucky that I purchased my current vehicle in December 2019, right before the pandemic and chip shortage drove prices way up. After years of increasing car prices, things are finally starting to tumble. Perhaps tumble is too strong a word, but car prices are finally dropping. Here’s the new average.
Vehicle prices have been increasing for about three years. So, why are prices finally going down? According to Livenowfox.com, “The recent price slowdown is due to a vastly expanded number of vehicles on dealer lots after years of severe shortages. With more cars and trucks available, the pressures that had surged prices have eased.” They also report that at the end of January this year, Cox Automotive numbers show that American car dealers had much more inventory than they did a year prior. In January 2024, their inventory stood at 2.61 million new cars, trucks, and SUVs; 2023 that number was 1.74 million.
Car prices: Here’s the average cost of a new and used car in 2024
Edmunds.com reports that the average price for a new vehicle in the United States (what was paid, not the sticker price) went down 1.2% in January from last year. By the end of January, it was $47,338. That still seems high, but the peak was $48,516 set in December 2022, so the price is adjusting. Moreover, car experts and analysts believe prices will keep falling this year as stock rises.
Now, let’s get into a used vehicle. According to Edmunds.com, the average price of a used car is currently $27,297, 3% lower than in 2023. Also, it’s way lower than the peak of $31,095 in April 2022. So, if you’ve been waiting for that new or used vehicle, you may have hit the right time.
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