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It’s a new year, but car buyers are still facing some of the same challenges. In 2024, the dilemma of choosing between a new or used car is influenced by several factors, including depreciation rates, interest rates, price trends, and the lingering effects of the pandemic. Let’s break down what you need to know to make the best decision in 2024.
Key Takeaways:
For most buyers in 2024, new car deals are more sensible due to lower financing costs and attractive incentives.
Used car prices are declining but remain high, affected by the pandemic’s long-term impact on production.
New cars offer appealing financial advantages with low APR offers and manufacturer incentives, despite their higher initial cost.
The choice between new and used cars depends on individual financial situations and long-term vehicle ownership plans.
Free resources are available to guide money-conscious drivers through car buying decisions.
Buy New in 2024, But Risk Depreciation
The automotive landscape has seen dramatic shifts in trade-in and resale values over the past few years. In 2024, a trend that began last year is continuing: used car prices are declining in wholesale markets, impacting trade-in values significantly. The era of purchasing a new car and flipping it for profit is over. Instead, we’re returning to the traditional pattern where new cars lose a substantial portion of their value as soon as they leave the dealership.
Interest Rates Matter – New Cars Have Much Lower APRs
This year, expect to see an uptick in subvented rates from captive lenders, as new car sales decelerate. Low APR offers are here to stay in 2024. Manufacturers are increasingly offering incentives to clear inventory, including surprising zero percent financing deals available in January. Despite stable interest rates, the high cost of loans remains a critical factor in the car market. Consequently, we anticipate a larger share of new car loans will be sourced through captive lenders like Hyundai Motor Finance, Ford Credit, and Toyota Financial Services.
Towards the end of 2023, data from Cox Automotive showed an uptick in 0% APR offers. We expect this trend to continue into 2024.
With the average used car loan rate now north of 13% APR, plenty of used car shoppers are checking out new car offerings to simply pay less interest.
Finally, Fair Prices Are Within Reach For New Cars
Don’t pay dealer markups for any vehicle in 2024. No matter what the salesperson might tell you, we’re firmly in a buyer’s market. This isn’t 2022’s car market anymore.
After consecutive years of rising MSRPs, the tide is turning in 2024. Although prices for the latest models have increased for the 2024 model year, we don’t foresee this trend continuing once 2025 model pricing is announced.
Resistance to high prices is growing among consumers, evident in slowing sales and increasing inventory, particularly for expensive cars, SUVs, and trucks. This resistance is gradually influencing the used car market as well.
Used Car Prices Trending Downward, But Remain High
Used-car wholesale prices have given up 53% of their pandemic gains. However, wholesale markets are largely off limits to the average car buyer. Unfortunately, this drop is less pronounced in retail prices. According to the Consumer Price Index, retail used car prices have given up just 36% of the pandemic price spike two years later. Retail used car prices are down 12.6% from the July 2022 highs.
Why are used car prices still high in 2024?
The auto market is still feeling the lasting effects of the pandemic-induced semiconductor chip shortage. Pandemic-related factory shutdowns resulted in 16 million vehicles never being produced. These missing vehicles contribute to a global shortage of used cars, expected to last until at least the late 2020s. Ray Shefska of CarEdge predicts a return to normalcy in the used car market might not occur until 2030.
In 2024, used car prices will continue their gradual decline, influenced by high interest rates deterring potential buyers. With new car loan rates exceeding 13% APR, a 20-year high, many buyers are turning away from used cars in favor of new vehicles with more attractive financing options. Indeed, new car deals make more sense for many buyers in 2024.
In 2024, the Details Matter For Car Buyers
2024 presents a nuanced picture for car buyers. While new cars offer more favorable financing options and the appeal of owning a brand-new vehicle, they also come with the risk of rapid depreciation and of course, higher prices.
On the other hand, used cars, although more affordable, are still priced relatively high due to market shortages years ago. Ultimately, the decision depends on individual priorities, financial situations, and long-term plans for vehicle ownership.
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Ready to outsmart the dealerships? We have FREE resources for new and used car buyers alike. Download your 100% freecar 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!
As we step into 2024, American drivers are noticing a larger auto insurance bill with their policy renewals. Based on an analysis of 97 million auto insurance quotes from Insurify, a clear picture emerges of the key trends in car insurance prices for this year. We’ll examine the factors driving up costs, and take a look at how consumers and the industry are adapting.
Record-High Rates in 2023 Set the Stage For More Increases in 2024
In 2023, auto insurance rates in the U.S. climbed 24% to an all-time record high. The spike in rates was driven by rising repair costs, natural disasters, and more frequent car accidents. This uptick in insurance costs led to record losses for insurers. The latest data suggests that car insurance premiums aren’t done climbing. Insurify projects that car insurance rates will increase by 7% in 2024. That’s almost double the typical annual rise.
The national average cost of a full-coverage policy now stands at $2,019 per year, amounting to 2.6% of the median household income. In comparison, state-minimum liability insurance averages at $1,154 annually.
The Wage-Insurance Gap Worsens
In 2023, car insurance rates increased by 638% more than the average wage growth. Nearly 62% of Americans reported a rise in their car insurance rates, and about 22% experienced more than one increase in the same year.
To combat these hikes, many drivers opted to lower their coverage limits or increase their deductibles. Insurify’s data shows that most drivers took action to reduce their premiums, often accepting more risk in exchange for lower monthly premiums.
New York stands out with the highest car insurance costs in the country, averaging $3,374 annually for a full-coverage policy.
States with lower incomes are feeling the brunt of these insurance cost increases. Drivers in these states spend a larger portion of their earnings on car insurance, exacerbating the financial strain on households already facing economic challenges.
The Insurance Industry Is In Trouble
The past few years have been tough for the insurance industry. After suffering a $3.8 billion net underwriting loss in 2021, losses deepened to $26.9 billion in 2022. 2023’s numbers are still pending, but there were some signs of a recovery late in the year.
The rising costs of maintenance and repairs, increased severity of accidents, and pandemic-induced market fluctuations have all contributed to these losses. The Bureau of Labor Statistics reported an 8.46% increase year-over-year in auto repair costs as of November 2023.
Advanced vehicle technologies and electric vehicles bring new challenges, with repair costs for high-tech cars and EVs like Tesla being substantially higher. Insurance companies are increasingly forced to choose between writing a check for a $20,000 repair bill after a seemingly minor accident, or writing the car off altogether.
How Can Drivers Save On Auto Insurance in 2024?
In light of the rising car insurance rates, here are some practical recommendations for car buyers looking to save money on their auto insurance in 2024:
Compare Insurance Quotes: Before settling on a policy, compare quotes from multiple insurance providers. Rates can vary significantly, so shopping around can lead to substantial savings.
Increase Your Deductible: Opting for a higher deductible can lower your insurance premiums. However, ensure that you can afford the deductible in case of a claim.
Choose Your Vehicle Wisely: If you’re in the market to buy, here’s where you have a chance to make a big difference in your insurance bill. The type of vehicle you drive impacts your insurance rates. Cars that are cheaper to repair or are known for their safety features typically have lower insurance costs. Research the insurance costs for different models before making a purchase. Compare maintenance costs for new and used vehicles here.
Maintain a Good Credit Score: Many insurers use credit scores to determine premiums. A higher credit score can lead to lower insurance rates, so it’s beneficial to maintain good credit.
Drive Safely: Safe driving not only reduces the risk of accidents but can also lower your insurance rates. Many insurers offer discounts for a good driving record or for participating in defensive driving courses.
Look for Discounts: Always ask about available discounts. Common discounts include those for multiple vehicles, no claims history, low annual mileage, having safety features on your vehicle, and bundling auto insurance with other policies like homeowners insurance.
Consider Pay-Per-Mile Insurance: If you drive infrequently, explore pay-per-mile insurance options. These policies base premiums on the number of miles you drive and can be a cost-effective choice for low-mileage drivers.
By following these recommendations, car buyers can make more informed decisions and potentially save money on their auto insurance in 2024, despite the overall trend of rising rates.For more information on the latest auto insurance trends, check out Insurify’s latest update.
Free Car Buying Help Is Here!
Ready to outsmart the dealerships? Download your 100% freecar 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!
It’s 2024, but that doesn’t mean that 2023 car models are a thing of the past. In fact, 796,000 new model year 2023 cars, trucks, and SUVs remain on dealership lots in February. While some car buyers may hesitate to take home a 2023 model in the new year, others see them as the best chance for negotiating a great deal. We used CarEdge Data to identify the new cars with the most remaining 2023 inventory right now.
The Top 20: Ford, GM, and Stellantis Inventory Surplus
In February of 2024, Ford, General Motors, and Stellantis brands have the highest inventory surplus of new 2023 models. This is what we’d expect from recent trends in our regularly updated guide to the most and least new car inventory.
Here’s a look at the remaining 2023 inventory on dealer lots. Dealers and OEMs alike are eager to sell these vehicles! Learn more about how Market Day Supply is calculated here.
Make
Model
Market Day Supply
Total For Sale (1/2024)
Ford
F-150
107
95,948
Nissan
Rogue
91
47,188
Ford
Explorer
102
37,353
Dodge
Charger
469
35,495
Dodge
Challenger
344
26,024
Ford
Mustang Mach-E
269
22,629
Ford
Escape
76
21,998
Jeep
Gladiator
166
17,736
Buick
Envision
166
17,404
Ford
Bronco 4-Door
136
15,886
Hyundai
Santa Fe
48
15,643
Ford
F-150 Lightning
164
13,438
Chevrolet
Traverse
56
12,094
Ford
Bronco Sport
51
11,837
Ford
Transit Van
79
11,422
GMC
Acadia
117
9,933
Toyota
Tacoma
19
9,907
Kia
Sorento
51
9,736
Ram
Ram 1500
106
9,663
Volkswagen
ID.4
85
8,994
Ford
There are over 100,000 2023 F-150s and F-150 Lightnings still on sale in February. However, market day supply is ‘only’ half of one year because of the popularity of America’s best-selling truck (and best selling electric truck).
Ford’s Mustang Mach-E has rave reviews, but that hasn’t been enough to sell cars. There’s a 269-day supply of 2023 Mustang Mach-Es.
Stellantis
When sorting by market day supply, Stellantis brands soar to the top. In February, there are four Stellantis 2023 models with over 100 days of supply. It’s shocking to see how many Dodge Chargers and Challengers remain unsold. At current selling rates, it would take well over a year to sell these cars.
The Ram 1500 isn’t far behind. It would take nearly four months to sell remaining 2023 inventory at today’s selling rates.
General Motors
The 2023 Buick Envision and GMC Acadia both have over 100 days of supply, with tens of thousands of cars remaining unsold. There are 12,000 unsold 2023 Chevrolet Traverses still out there, but as a quick seller, they will likely be sold in just two months.
Follow the Inventory: The Best Deals This Month
The best SUV financing offer this month is the 2023 Hyundai Santa Fe. Finance the Santa Fe at 0% APR for 36 months, or 3.39% APR for 60 months. Plus, get up to $2,000 in cash incentives.
The Ram 1500 Classic can be leased for just $470/month for 36 months, with $4,500 due. Buyers get up to $3,000 in cash allowance this month.
Ford fans can lease a 2023F-150 Lariat for $577/month for 39 months with $6,525 due. The Ford Mustang Mach-E is one of the best EV lease deals in February. Lease a Ford Mustang Mach-E for $452/month for 39 months with $4,932 due.
The GMC Acadia is one of the best SUV lease deals this month. Lease the GMC Acadia at $249 per month for 24 months with $3,869 due.
Get out there and negotiate, or let us do it for you!
Remaining 2023 models present the best opportunity for negotiating thousands of dollars off of the price of a new car this month. With three quarters of a million 2023s remaining on dealership lots, something has to give. Here’s to hoping that at last, prices could be softening.
At CarEdge, we are committed to helping you navigate through these opportunities to secure the best possible deal, regardless of your budget. From free cheat sheets and guides to our comprehensive Concierge service, we are here to take the hassle out of the second-largest purchase most will ever make.
👉 Ready to outsmart the dealerships? Download your 100% freecar 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!
Choosing the right electric vehicle is about more than just reducing your carbon footprint. Reliability is a crucial factor, particularly as the cost of repairing an electric vehicle outside of warranty becomes a frequent headline. Here, we present the top 10 most reliable EVs for 2025, according to Consumer Reports.
We have a number of EV enthusiasts on the CarEdge team, from Tesla fans to Hyundai IONIQ 5 owners. In our opinion, Consumer Report’s EV reliability ratings need to be taken with a grain of salt. Several of the best-rated electric vehicles on the list have some of the slowest charging, lowest range, and in some cases, all-around poor reviews.
Take the all-new Lexus RZ for example. Although it’s a Lexus, it shares the same electric powertrain with the Toyota bZ4X and even the Subaru Solterra. In Out of Spec’s test, the RZ went just 176 miles on the interstate at 70 miles per hour on a full charge in warm weather. Most of the competition is good for at least 200 miles on the highway between charging stops.
The best-equipped EVs on the Consumer Reports reliability list are, in terms of charging speeds and range, the Hyundai IONIQ 6, Tesla Model 3, Kia EV6, and BMW’s electric offerings. These models offer more range, and less time spent at charging stations.
Is 2025 the right time to buy an EV?
If you’re planning to keep your next vehicle for years to come, and you’re willing to exchange convenience on road trips for fuel savings and slashing tailpipe emissions, then 2025 is a good time to go electric. If you’re likely to need an upgrade in a few years, we strongly recommend an EV lease. Resale values continue to undergo wild swings in the used EV market. This will continue as better-equipped EVs hit the market in years to come.
As 2023 comes to a close, the new car market is brimming with opportunities for big savings. With an increase in inventory and the arrival of 2024 models, Mazda and Subaru dealers, along with their manufacturers, are feeling an increased urgency to sell off their current stock. Here, we’ve highlighted the best year-end deals for Mazda and Subaru in 2023, with the spotlight on low APR SUVs available for a limited time.
0% APR for 60 months + No payments for 90 days (ends 1/2/24)
The CX-5 comes with standard all-wheel drive, a rarity outside of Subaru. 2024 model year CX-5s have recently arrived at dealership lots, and with zero percent financing, it’s clear that Mazda is looking to sell them immediately. Mazda also has several models at 0.9% to 1.9% APR in December, including the popular CX-30, CX-50, and the large CX-90.
2024 Mazda CX-5 dealer inventory is down slightly over the past month, from 144 days of supply to 115 days of supply. That’s still twice the market norm of roughly 60 days. This indicates that Mazda dealers should be willing to negotiate, at least before the end of 2023. Dealers and salespeople are eager to meet year-end sales targets.
0% APR for 36 months + No payments for 90 days (ends 1/2/24)
This Mazda offer applies to the Turbo Select, Turbo Preferred, Turbo Preferred Plus, Turbo Premium, or Turbo Premium Plus trims only. The 3-row CX-90 is Mazda’s largest model, with 74.3 cubic feet of cargo volume with the seats down. It comfortably seats 7 passengers. Reviewers agree that the all-new CX-90 is a shockingly luxurious mid-size SUV, and represents incredible value at the price point.
With so many CX-90s shipped to dealer lots, inventory is currently very high at 135 days. With a financing offer like this, we’re left wondering why more SUV buyers aren’t taking advantage of this deal.
0% APR for 36 months + No payments for 90 days (ends 1/2/24)
The 2024 CX-30 gets a $2,000 price increase for 2024, so buyers are taking advantage of great financing offers for remaining 2023 CX-30 inventory. With standard all-wheel drive, 191 horsepower and combined 29 miles per gallon, this crossover is a compromise that simply works.
There are only 2,000 2023 CX-30s remaining nationwide, so this deal won’t last.
Subaru is ending the year with a rare offer for its second most popular model, the Outback. If you haven’t sat in an Outback for several years, you’d be surprised how far this model has come. Featuring modern tech that perfectly compliments the Outback’s beloved all-terrain capability, this financing offer is one to get excited about.
Currently, there are nearly 27,000 Outbacks sitting on dealer lots, of which 26,000 are new 2024 models. With 85 days of market supply, there are more Outbacks available than normal. Negotiability is possible, but not what we’d consider likely. Dealers know the Outback is popular, and may be willing to hold on to them into the new year.
For new car shoppers considering Subaru and Mazda, December 2023 is an exceptional time to find the year’s most attractive deals. With a range of incentives, the year-end rush to sell, and the availability of 2023 Subaru and Mazda models, holding off until 2024 might mean missing out on current opportunities.
The situation in the used car market, however, is less clear-cut. Recent trends indicate a drop in prices, but the full impact of these changes and their duration remains to be seen. Particularly for Subaru and Mazda used cars, the market’s fluctuating dynamics make predicting the best time to buy in 2024 somewhat uncertain. See our December used car market update here.
Free Car Buying Help Is Here
Ready to outsmart the dealerships? Download your 100% freecar 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!
CarEdge Insights
