Average Selling Prices Are Down 5% So Far in 2024 – Some Brands Are Dropping Even Faster

by Justin Fischer | Last updated Mar 25, 2024 | Car Buying, New Cars, News

In 2024’s car market, we’ll take good news where we can get it. Since 2018, new car prices have soared 32% on average. However, we’re seeing a different trend this spring: falling new car prices. Market-wide, the average transaction price for a new car sold in the U.S. has fallen by 5% since the start of the year. Yet, a closer look depicts a more nuanced picture, with certain brands experiencing significant price drops. Let’s delve into these changes and what they signify for consumers and the industry alike.

New Car Prices Are Falling, For Some More Than Others

Without further ado, take a look at the fresh data below. Then, we’ll dive into the details! I think it’s safe to say that new car prices are falling, regardless of whether or not MSRPs are. (Actually, MSRPs are falling too!)

Our latest analysis, leveraging CarEdge Data, offers a fresh perspective on the pricing strategies of major car manufacturers. Or perhaps this isn’t the result of strategies, but rather the result of months of oversupply combined with high interest rates.

Remarkably, brands like Dodge, Chevrolet, Cadillac, and Ford have seen substantial price reductions. Just how big are we talking? Average selling prices for these brands are down nearly 10% in just three months. 

Here’s a look at the data from top-selling makes in America:

Dodge leads with a price drop of over 12%, followed closely by others such as Chevrolet and Ford, which have dropped by more than 7% in a few months. Even Honda, Hyundai, Kia, and Mazda have seen falling prices too. Luxury car prices are down across the board.

The only car brands with rising car prices in 2024? For that, we look to two popular Japanese brands: Toyota and Subaru. With less inventory than most of the overall market (44 days of supply for Toyota, and 86 days of supply for Subaru), it’s not unexpected. At least both of these brands sell cars for well under today’s ridiculously high average price of roughly $47,000.

The Bigger Picture: The Bubble Has Burst!

Zooming out, overall new car price trends indicate a market that is correcting itself after years of steady increases. It’s about time. This change in direction is crucial for consumers seeking an affordable new car, especially as interest rates look to remain high for most if not all of 2024. 

How do we know that the new car market’s bubble is bursting? 

Consider the following:

• In March 2024, there’s an 80-day supply of new cars on dealer lots. Normally, this figure is closer to 60 days. The oversupply continues to grow.
• Incentive spending is growing: Discounts and incentives in January averaged 5.7% of the selling price, up from 5.5% in December and nearly 100% higher than a year ago.
• Low APR offers are growing in number, despite high interest rates. 
• As the data here shows, only two mainstream OEMS have rising selling prices in 2024. On average, transaction prices have fallen 5% this year.

In Conclusion: Prices Will Continue to Fall

Late March is the end of the quarter, and that means dealers and automakers alike are going all-out to sell cars. Come April, some of the best deals will vanish, but not for long. With new car inventory remaining high, there will still be deals in April, just not quite as many zero percent APR offers or great lease deals.

Wondering if you’re getting a good deal? Get behind-the-scenes industry insights with CarEdge Data. See local price and inventory metrics that typically only the dealers have. It’s empowered car buying for all!

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7 New Cars with Falling Prices in 2024

by Justin Fischer | Last updated Mar 19, 2024 | Car Buying, New Cars, News

Despite new car prices remaining at historically high levels, a sales slowdown has led to MSRP reductions for multiple models in the first three months of the year. An oversupply of electric vehicles has intensified competition, prompting major automakers like Ford, Hyundai, Chevrolet, and Nissan to cut prices on their flagship models. But it’s not just EVs – even popular Jeep and Mazda models are now thousands of dollars cheaper. Here are seven models that have actually gotten cheaper in 2024.

Jeep Grand Cherokee

Price Drop: -$4,525

The Details: For the 2024 model year, Jeep has significantly reduced prices across most of the Grand Cherokee lineup. Price reductions range from $2,000 on lower trims to $4,595 on the high-end Summit Reserve trim, bringing its starting price below $70,000. These cuts are consistent across both two-row and three-row models, with the exception of the Laredo A and hybrid 4xe trims.

Jeep inventory has been building to record levels, adding a particular sense of urgency to Jeep’s sales push. Smart buyers can take advantage of this negotiability to save even more.

👉 Today’s Best Offer: $3,500 cash allowance, or $3,000 in lease support.

See Jeep Grand Cherokee listings with local market insights.

Jeep Gladiator

Price Drop: -$1,725

The Details: The 2024 Jeep Gladiator has been updated with a new grille and a 12.3-inch touchscreen, with its starting price reduced by $1,725 to $39,790 for the base Sport model. Opting for the Sport S trim raises the starting price to $43,290, while the more luxurious and capable Rubicon and Mojave trims are priced at $54,890.

There are plenty of Jeep Gladiators to choose from on dealer lots. CarEdge Data shows a current day supply of 79 days for the nearly 10,000 remaining 2023 Gladiators, and 163 days of supply with new 2024s taken into the picture. 

👉 Today’s Best Offer: 15% below MSRP, or lease for $589/month for 36 months with $5,599 due.

See Jeep Gladiator listings with local market insights.

Ford Mustang Mach-E

Price Drop: -$8,100

The Details: Believe it or not, every single Mustang Mach-E on dealer lots in March was a 2023 model. Why introduce the new model year when over 20,000 of last year’s vehicles remain unsold? That’s the predicament Ford finds themselves in. It’s also why Ford is continuing a rare 0% APR incentive for the Mach-E. 

The good news is that all 2023 Mustang Mach-Es have received a massive price cut. The Mustang Mach E now has a base MSRP of $39,895, down from $42,995. The higher-end Mach-E GT spec will cost about $7,600 less, at $52,395. Other versions including the extended-range premium version will drop in price by $8,100 to $48,895.

👉 Today’s Best Offer: 0% APR for 72 months + $3,000 cash offer. Lease for $403/month for 36 months with $5,473 due.

See Ford Mustang Mach-E listings with local market insights.

Chevrolet Blazer EV

Price Drop: -$6,520

The Details: 2024 Chevrolet Blazer EV sales have resumed following a software-related stop-sale. In a push to garner interest, GM dropped prices for the Blazer EV across the board. The least expensive version now starts at $50,195 for the LT AWD trim, and that’s before the $7,500 EV tax incentive. More versions of the Blazer EV are on the way later in 2024, including the more affordable base model.

👉 Today’s Best Offer: Lease from $469/month for 36 months with $2,939 due.

See Chevrolet Blazer EV listings with local market insights.

Nissan Ariya

Price Drop: -$6,000

The Details: Nissan has reduced the price of its 2024 Ariya, with the base front-wheel-drive model now starting at $40,980, a $3,600 decrease. Higher trims saw larger price cuts of up to $6,000. The top-end 389-hp e-4ORCE Platinum+ version is priced at $55,580. Despite not qualifying for the $7,500 federal tax credit due to its Japanese manufacturing, these reductions make the Ariya more competitive, especially against rivals like the Ford Mustang Mach-E and electric offerings from Hyundai and Kia.

👉 Today’s Best Offer: 0% financing for 72 months plus $1,000 loyalty cash.

See Nissan Ariya listings with local market insights.  

Mazda CX-90

Price Drop: -$4,000

The Details: Mazda’s newly-arrived flagship model, the three-row CX-90, is already receiving significant price cuts. Everyone seems to love the CX-90, but at near-luxury prices, perhaps Mazda’s fanbase was disinterested with today’s financing costs. The highest trim, the Turbo Premium Plus, has seen the most significant price reduction of $4,050, now priced at $50,275. The 340-hp Turbo S models have also seen price cuts of $4,000. The base Turbo Select model’s price has decreased by $1,750, bringing it under $40,000 to $39,220.

👉 Today’s Best Offer: Lease from $379/month for 36 months with $4,899 due. Buy with 2.9% APR financing + $1,500 conquest cash bonus.

See Mazda CX-90 listings with local market insights.

Hyundai IONIQ 6

Price Drop: -$4,000

The Details: The 2024 Hyundai Ioniq 6 is now up to $4,100 cheaper, starting at $38,615. This reduction applies to the base rear-drive, standard-battery model, with other versions seeing cuts between $2,450 and $3,050. These price adjustments are attributed to improved production efficiencies and scale. The standard battery version of the Ioniq 6 offers a 240-mile driving range, while models with the larger battery can achieve up to 361 miles. 

👉 Today’s Best Offer: $7,500 total cash savings + 2.99% APR financing or lease from $249/month.

See IONIQ 6 listings with local market insights.

More Price Drops to Come? It’s Likely

As we navigate through mid-2024, the persistence of high interest rates is setting the stage for potential further MSRP reductions, particularly from Nissan and Stellantis brands like Ram, Dodge, and Jeep. These brands have witnessed a noticeable build-up in inventory levels, indicating a shift in consumer preference and a growing need to adjust pricing strategies. In simple term, more price cuts are likely on the way. 

Check back for the latest price updates as we move further into 2024.