2024 Poised to Be the Best Year for Auto Purchases Since Pandemic

As the New Year unfolds, 2024 is shaping up to be a beacon of hope for prospective car buyers. Jonathan Smoke, Chief Economist at Cox Automotive, has forecasted that this year could be the most favorable for purchasing a new vehicle since the pre-pandemic era. This optimism stems from a combination of increasing vehicle supply, reducing transaction prices, expected deals from automakers, and a potential ease in interest rates. “With supply normalizing and the economy stabilizing to hit a soft landing and not turn into a recession, it leads to an environment that is the most normal we’ve encountered since 2019,” Smoke explained in a recent interview with the Detroit Free Press. “For consumers looking to buy a vehicle, it’s the best year by far since 2019.” This outlook is particularly noteworthy given the tumultuous market conditions experienced in the wake of COVID-19. Recent trends in the auto industry have painted a challenging picture for buyers. In 2021 and most of 2022, new-vehicle supply plummeted to historic lows due to parts shortages, pushing transaction prices upward. This trend led to many dealers selling vehicles above the sticker price. However, this year marked a turnaround with an improvement in supply, albeit...