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Is It Better to Buy Or Lease a Car in 2024?
The decision between buying and leasing a car is a tricky one. In 2024, this choice is even more pertinent due to shifting market dynamics and attractive manufacturer incentives. Drawing insights from CarEdge Co-Founder Ray Shefska, we delve into the nuances of buying versus leasing to help you make an informed decision.
Understanding Leasing in 2024
Leasing has traditionally been a popular option for drivers seeking lower monthly payments and the flexibility to change cars every few years. However, leasing fell out of favor during the pandemic era. In 2024, leasing is once again growing in popularity as drivers look to avoid the high interest rates that come with buying. There are also reasons why the dealers and car manufacturers themselves are fans of leasing.
Leasing keeps customers coming back to the dealership, more so than selling does. It’s also seen as a proven method of increasing brand loyalty. Ray highlights that many manufacturers are trying to increase the number of vehicles that are being leased due to the benefits it offers both dealerships and customers. Leasing ensures customers return at the end of their term, potentially increasing brand loyalty and dealership traffic.
Historically, leasing deals accounted for about 30% of all new car sales. However, this figure has recently dipped to around 17-18%. In response, manufacturers are rolling out aggressive leasing deals to climb out of the leasing slump. In early 2024, there’s an abundance of attractive lease offers for popular models.
First, let’s talk about whether buying or leasing makes sense for you.
The Benefits of Leasing a Car
Leasing in 2024 offers several advantages over buying:
- Lower Monthly Payments: Aggressive leasing deals can significantly reduce monthly payments, making it feasible for customers to opt for higher trim levels without stretching their budgets.
- Quality Used Inventory: The end of lease terms brings a wave of desirable used vehicles back to dealerships, benefiting the used car market with a supply of attractive options.
- Flexibility: Leasing allows consumers to enjoy the latest models every few years, along with the latest technology and safety features, without the long-term commitment of buying.
👉 See the Best Lease Offers This Month
The Benefits of Buying a Car in 2024
Purchasing a vehicle outright continues to be a viable option for those looking for long-term value and ownership. These are the main advantages of buying instead of leasing:
- No Mileage Restrictions: Unlike leasing, buying a car frees you from mileage limits, making it ideal for those with high commute demands.
- Ownership Equity: Every payment made towards buying a car builds equity, eventually leading to outright ownership, which can be financially beneficial in the long run. Keep in mind that it’s never a smart idea to buy if you plan to sell within a few years. Depreciation hit’s hard, as car owners are finding out today.
- Freedom to Customize: Owning a car allows for personalization and modifications without the restrictions typically imposed by a lease agreement.
👉 If you’re looking for a complete, in-depth breakdown of leasing see the CarEdge Consumer’s Guide to Leasing in 2024.
Making the Right Choice
The decision to buy or lease in 2024 hinges on personal preferences, driving habits, and financial considerations. Ray advises, “Customers should check the manufacturer website and see what kind of sales and lease offers are available in their area before heading to the dealership.” Additionally, it’s crucial to check insurance costs before falling head over heels for any new car.
👉 See this month’s best leasing and financing offers
Conclusion
In 2024, whether to buy or lease a car depends on your individual needs and lifestyle. With manufacturers pushing more attractive lease deals, leasing may become a more appealing option for many. Leasing is a great way to avoid the worst effects of today’s high interest rates.
However, the long-term benefits of ownership and the freedom that comes with buying a car remain compelling factors. By carefully weighing the pros and cons and staying informed about current offers, you can make a decision that best suits your circumstances and ensures your satisfaction in the ever-changing automotive landscape.
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!
Nissan Can’t Sell Cars Right Now. That’s Good News For Deal Seekers.
In the realm of car buying, understanding market days supply can be a game-changer for finding great deals. Market days supply refers to the number of days it would take to sell all current inventory at the current sales pace without additional supply. A higher market day’s supply indicates more room for negotiation, often leading to better incentives for buyers. Currently, Nissan stands out with an overall market day supply of 135 days. That’s nearly double the ‘healthy’ inventory standard of between 45 to 80 days of supply on hand. The context of today’s market reveals a concerning trend for the brand, and a potential advantage for deal seekers.
Here’s a look at the latest Nissan inventory, and where you can find the best offers this month.
Is Nissan in Serious Trouble?
Nissan’s situation is dire for two reasons: the rapid growth of its inventory, and falling market share in the U.S.
Right now, Nissan’s inventory sits at 135 days of supply, with 185,875 cars unsold. In December 2023, Nissan’s days of supply were at 112, a significant jump from a “healthy” 71 days in September 2023. This near doubling of inventory in just four months raises questions about Nissan’s market position and sales strategy.
The decline in Nissan’s US market share further complicates the picture. From holding 11% of American new car sales in 2018, Nissan’s share plummeted to 6% in 2022. Despite a 23% increase in sales in 2023, with 898,796 vehicles sold, its market share dipped further to 5.8%. Nissan’s EV sales continue to struggle, too. In other words, Nissan is in trouble in the U.S. car market.
Here’s a look at Nissan’s real-time inventory in the U.S. market:
| Make | Model | Market Day Supply | Total For Sale |
|---|---|---|---|
| Nissan | Altima | 160 | 20871 |
| Nissan | Ariya | 166 | 5028 |
| Nissan | Armada | 248 | 5683 |
| Nissan | Frontier | 184 | 19824 |
| Nissan | Kicks | 165 | 18054 |
| Nissan | LEAF | 252 | 2594 |
| Nissan | Maxima | 114 | 842 |
| Nissan | Murano | 164 | 6936 |
| Nissan | Pathfinder | 119 | 16222 |
| Nissan | Rogue | 87 | 44908 |
| Nissan | Sentra | 186 | 30632 |
| Nissan | Titan | 255 | 5781 |
| Nissan | Versa Sedan | 105 | 6318 |
| Nissan | Z | 182 | 904 |
Let that sink in. Nissan only has one model with under 100 days of supply. Remember, a healthy inventory is between 45-80 days, depending on the time of the year. Three models exceed 200 days.
But how does Nissan compare to the competition? Are Honda, Toyota, and Mazda also in the same boat? Let’s take a look.
Nissan Versus the Competition
Nissan’s primary rivals include other Asian automotive giants renowned for blending reliability with affordability. Here’s how Nissan’s inventory levels compare to its key competitors:
- Hyundai: 102 days of supply
- Kia: 62 days of supply
- Mazda: 56 days of supply
- Honda: 50 days of supply
- Toyota: 46 days of supply
Yet, Nissan’s inventory dilemma isn’t isolated within the global market. American brands also show varied levels of supply:
- Ford: 118 days of supply
- Chevrolet: 78 days of supply
- Jeep: 193 days of supply
This comparison highlights Nissan’s unique position and suggests that for those looking to purchase a new car, Nissan dealerships might be more inclined to offer attractive deals to reduce their bloated inventories. For deal hunters, Nissan’s current predicament could be a silver lining, offering the chance to negotiate more favorable terms on a new vehicle. See detailed inventory numbers for your area with CarEdge Data.
👉 See the most negotiable new cars, trucks, and SUVs this month
The Best Nissan Deals This Month
With Nissan’s current oversupply, this month presents prime opportunities for buyers to snag great deals. From 0% APR on select models to substantial cash back offers, there’s a wide array of incentives available. Check out the highlighted deals for models like the 2024 Altima and the 2023 Rogue. For a more detailed look at local market data, utilize CarEdge Data‘s insights.
APR Offers
2024 Nissan Altima: 0% APR for 36 months
2024 Nissan Murano: 0% APR for 36 months
2023 Nissan Titan and Titan XD: 0% APR for 60 months
2023 Nissan Rogue: 1.9% APR for 60 months
Most other models qualify for APR offers under 3.0% APR
Cash Offers
2024 and 2023 Nissan Titan: $3,590 total savings + $1,500 cash back
2023 Nissan Murano: $4,500 total savings
2023 Nissan Rogue: $2,000 cash back
2024 and 2023 Nissan Armada: $1,500 cash back
Several Nissan models qualify for $500 – $1,000 cash back. See the details at NissanUSA.com
Lease Offers
2024 Nissan Sentra S: $269 for 36 months with $3,059 due
2024 Nissan Altima SV: $289 for 36 months with $3,389 due
2023 Nissan Ariya Engage FWD: $199 for 18 months with $4,399 due
2023 Nissan Rogue S AWD: $339 for 36 months with $3,739 due
2024 Nissan Pathfinder S 4WD: $409 for 36 months with $3,849 due
See all of Nissan’s offers this month at NissanUSA.com. Negotiate with confidence using CarEdge Data’s local market insights.
Leverage Nissan’s Oversupply to Your Advantage
In conclusion, Nissan’s current oversupply and market position may seem like a challenge for the brand, but it spells good news for smart car buyers. With a high market day supply and a noticeable dip in U.S. market share, Nissan is more likely to offer attractive deals to move inventory.
This unique situation provides a rare opportunity for deal hunters to secure favorable terms on a new Nissan, from leasing to financing. By leveraging the current market dynamics and utilizing resources like CarEdge Data for local market insights, buyers can navigate this buyer-friendly market with confidence.
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!
3 Things to Know Before Buying a Car in 2024
When it comes to buying a car in 2024, there are three things to know to spend less, and avoid overpaying. To navigate this evolving market, we sought the expert advice of CarEdge Co-Founder Ray Shefska, who shared his top insights for those looking to purchase a new or used vehicle this year. Here are three crucial points to consider before making your decision.
1. Negotiate Aging Inventory
The first key point is the potential for negotiation due to aging inventory. Remember this: the average new car sells for nearly $50,000 these days, but you DON’T have to spend that much. Lot inventory has risen substantially over recent months, especially with new cars. Use this to your advantage!
Auto industry veteran Ray Shefska emphasizes the importance of doing your research before talking to ANY salesperson. “With the cost of carrying on hand inventory higher than it has been in over a decade, how many days a vehicle has been in the dealer’s inventory is extremely important.” Ray is referring to sky-high floorplanning costs. High interest rates don’t just hit buyers; car dealers are impacted too.
Ray advises asking the salesperson or Sales Manager about the oldest vehicles in terms of inventory days, especially those that match your preferences in trim and color. Better yet, use tools like CarEdge Data to find particularly negotiable new or used car inventory in your area.
👉 See this month’s most and least negotiable new cars
As Shefska points out, aging inventory is perfectly ripe for negotiating a sweet deal. “The longer any vehicle sits, the greater the carrying costs are, and the greater the impact is on the profitability of the vehicle sale.” This situation presents a unique opportunity for buyers to put car buying skills to work, saving thousands of dollars along the way.
👉 Try CarEdge’s Deal School (100% FREE) to master the art of negotiating!
2. Understand Your Credit and Buying Power BEFORE Shopping
The second critical thing to know before buying any car in 2024 is your credit situation. Knowing your credit score is always a good thing, but with auto loan rates averaging north of 10% APR, it matters now more than ever before.
It’s painful to say, but the average new car APR is now 9.95%. Used car prices may be lower, but be prepared to pay more in loan interest. Today, the average used car rate is almost 14% APR. Ray stresses the importance of getting pre-approved and knowing your budget limits. “If you’re open to APR offers below 5%, the opportunities are nearly endless as automakers increase incentives to sell excess inventory,” he adds, highlighting the importance of shopping around.
Remember, before committing to a car purchase, it’s crucial to know where your credit score stands and what monthly payment you can comfortably afford.
There are plenty of free car payment calculators available online, such as this calculator from NerdWallet. Be sure to enter an APR that you’re likely to qualify for! Not sure? Perhaps a good first step would be to speak with your local credit union.
3. Factor in the Rising Cost of Auto Insurance
Wouldn’t it be nice if loan payments were all you had to plan for? Your monthly car bill is just the beginning. There’s also gas money, the possibility of repairs or routine maintenance, and of course car insurance. And that’s aside from worsening depreciation in 2024.
A recent analysis by Insurify shows that auto insurance premiums increased by 24% in 2023 and are likely to climb an additional 7% in 2024. This makes it essential to get an insurance quote before finalizing your vehicle purchase. As Ray warns, “Many people are shocked when they find out how much their insurance premium will increase because of the vehicle that they just purchased.” Understanding this expense is crucial for maintaining a manageable monthly budget. Learn more about auto insurance rates in 2024.
Preparation Sums It All Up
These insights offer a clear roadmap for new and used car buyers in 2024. By focusing on these key areas – negotiating on aging inventory, understanding your financial capacity, and considering rising ownership costs like insurance and maintenance – you can make a well-informed and financially sound decision when purchasing your next vehicle. Remember, preparation and knowledge are your best tools in the current automotive market.
👉 We track the best deals every month. See this month’s best new car deals here.
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!
How Reliable Are the Cheapest New Cars in 2024?
The average price paid for a new car has jumped by 30% in just five years, but that doesn’t mean you can’t get a great deal on an affordable new ride. In early 2024, the average selling price of a new car remains near all-time highs at $48,759. Believe it or not, today there are still several new cars on sale for under $25,000. These are the Consumer Reports reliability ratings for the five cheapest new cars on sale in 2024.
2024 Chevrolet Trax
Starting Price: $20,400
Fully-Loaded Price: $25,000+
Special Offer: Buy or lease for just $399/month. Learn more
Consumer Reports Reliability Rating: 43/100
The 2024 Chevrolet Trax stands out for its sleek and modern design, which is paired with a shockingly affordable price for an SUV. It offers impressive fuel efficiency, making it an economical choice for both city driving and longer journeys. Additionally, the Trax is equipped with the latest technology and safety features, ensuring a comfortable and secure driving experience.
Browse Chevrolet Trax listings with the power of local market data.
2024 Nissan Versa
Starting Price: $16,290 (manual), $17,960 (automatic)
Fully-Loaded Price: $29,995
Consumer Reports Reliability Rating: 45/100
The 2024 Nissan Versa Sedan offers exceptional value as one of the only new cars available for under $20,000 today. The Versa offers a surprising range of features and solid quality. It boasts a comfortable and spacious interior considering its sub-compact size. Additionally, the Versa Sedan delivers good fuel economy, averaging 32 miles per gallon in the city and 40 MPG on the highway.
Browse Nissan Versa listings with the power of local market data.
2024 Mitsubishi Mirage
Starting Price: $16,695
Fully-Loaded Price: $26,130
Consumer Reports Reliability Rating: 50/100
The 2024 Mitsubishi Mirage is a cost-effective, affordable new car. Considering it’s not a hybrid, the Mirage is very fuel efficient, boasting 36 MPG in the city and 43 MPG on the highway. It features a range of trims and modern technology, along with notable safety, including 7 airbags. That’s a lot for such a small car. This makes it a practical choice for those prioritizing economy and safety in a small vehicle.
Browse Mitsubishi Mirage listings with the power of local market data.
2024 Kia Forte
Starting Price: $19,990
Fully-Loaded Price: $32,985+
Consumer Reports Reliability Rating: 67/100
The 2024 Kia Forte is now Kia’s most affordable offering after the discontinuation of the Kia Rio last year. The Forte is a compact sedan that combines practicality with the best reliability ratings for under $20,000. It features a spacious interior for the price, with a total interior volume of 96.0 cubic feet. This spaciousness is complemented by a range of options and trims, catering to various preferences and needs. The Forte is a great choice for those who desire more than the cheaper Mitsubishi and Nissan can offer.
Browse Kia Forte listings with the power of local market data.
2024 Hyundai Venue
Starting Price: $19,800
Fully Loaded Price: $31,995+
Consumer Reports Reliability Rating: 60/100
The 2024 Hyundai Venue stands out as the only other SUV on this list, albeit a subcompact one. It offers a decent cargo volume of 18.7 cubic feet with the rear seats up, which expands to 31.9 cubic feet when the rear seats are folded down. This makes it a versatile choice for both daily commutes and more demanding cargo needs. The 2024 Hyundai Venue is the only SUV priced below $20,000, but even with destination fees applied, it’s going to surpass that figure. Its compact size, affordability, and versatile nature make the Venue a unique offering for those seeking a budget-friendly SUV.
Browse Hyundai Venue listings with the power of local market data.
Affordability and Reliability CAN Coexist
In conclusion, the search for affordable and reliable new cars in 2024 reveals a diverse range of options under $25,000. Models like the Chevrolet Trax, Nissan Versa, Mitsubishi Mirage, Kia Forte, and Hyundai Venue stand out for their balance of price, reliability, and modern features. Each offers unique advantages, from the Trax’s incredible value to the Venue’s versatility as a subcompact SUV. These models demonstrate that affordability doesn’t necessarily come at the expense of quality and reliability. See the latest deals on the Chevy Trax and more here.
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!
Trade-In Values Are Falling in 2024 – Here’s What to Expect In the Months Ahead
If you’re thinking about buying or selling a vehicle in 2024, you’ve most likely encountered an unfortunate truth in today’s market: trade-in values have taken a dive. But what’s driving this decline, and how does it affect your next vehicle purchase? Will trade-in values fall further in 2024? Let’s delve into the dynamics of trade-in values in 2024, exploring the causes behind this trend and what you can expect when you decide to trade in your vehicle.
The Decline in Trade-in Values
In 2024, trade-in values are trending downward, primarily due to a steady decline in used car values at wholesale auctions. Last year’s volatility in the wholesale used car market has led to an 11% drop in values within just two months towards the end of 2023. We’re seeing that trend carry over into 2024. Despite this decrease at the wholesale level, retail prices have remained stubbornly high, resisting substantial drops as dealers maintain higher price points.
The used car dealers who make offers for trade-ins are nervous about two things: the slowing used car market, and high interest rates. Many dealers suffered huge losses on electric vehicle trade-ins in 2023 as values went into freefall. The same could be said about other vehicle segments, from vans to luxury SUVs.
The used car market turmoil has resulted in trade-in values falling more dramatically compared to retail prices.
👉 See this week’s used car market update
Pro from CarEdge’s Ray Shefska
CarEdge Co-founder Ray Shefska has some thoughts to share about trade-in values in 2024. Ray highlights that, despite the drops, trade-in values in 2024 are still far from what they used to be pre-pandemic. The automotive market is slowly inching towards a balance, but it’s a gradual process. “The car market remains out of balance due to the 16 million vehicles that were never built during the pandemic shortages. This shortfall will continue to impact the market throughout the decade, but we’re starting to see signs of improvement,” he noted.
What can you do to stay on top of the latest trends in trade-in values for your car? Get offers from online buyers with no strings attached! See real-time offers from online buyers with CarEdge.
What to Expect in 2024
According to Ray, 2024 is expected to bring back some normalcy in terms of market seasonality, which has been absent for a while. The early part of 2024 has already seen a dip in trade-in values, attributed to the post-December buying slump.
However, this trend is likely to reverse during the tax refund season in spring, which typically sees an uptick in used car purchases. This increase in demand often leads to a temporary boost in trade-in values.
“Post-tax season, I expect a slight decline in trade-in values in early summer, followed by a steady market until the year-end car buying season. Remember, depreciation is normal for every vehicle. What we’ve seen over the past few years was abnormal to say the least.”
Ray’s pulse on the market is rooted in over 40 years in the automotive industry. If anyone knows a thing or two about trade-in values, it’s Ray.
Historically, vehicle values take a 20% hit in the first year of ownership. It’s normal to lose around 40% of a car’s original value in the first five years.
The Takeaway
Navigating the auto trade-in market in 2024 requires an understanding of these new trends and their underlying causes. From the pandemic’s lasting impact to the return of market seasonality, various factors are shaping trade-in values this year. Whether you’re planning to trade in your vehicle soon or later in the year, staying informed about these trends can help you make a more strategic decision, ensuring you get the best value for your car in a shifting market.
👉 Don’t forget to check your car’s trade-in values from online buyers (no spam, guaranteed!). Get your no-hassle offers here.
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!
