Will Car Prices Drop In 2024?

Written by Marsh Finance | Aug 8, 2024 2:00:00 PM

The cost of cars has been all over the place lately. You might be wondering, will prices keep going up, or are things starting to settle down? Let's break it down.

With everything going on, it's tough to know what to expect when buying a car. We'll help you understand what's happening so you can make the best decision.

New Car Prices: What’s the Deal?

Used Car Prices: Are They Going Down?

Why Are Used Car Prices So Volatile?

So, What Should You Do?

Marsh Finance Has Your Back

New Car Prices: What’s The Deal?

So, you're looking to buy a car. You might be thinking, how much will a car set me back? Is the car market still really expensive? While we can’t say for sure, it looks like new car prices will go down.

The car market has faced a lot of challenges recently. Global supply chain issues and semiconductor shortages has slowed down the building of new cars. As these problems start to get better, we should see a drop in prices.

Don't expect low prices right away. There is hope however that prices could get better. Cox Automotive, a big name in car market analysis, thinks new car prices might not be as high as they have been since the COVID-19 pandemic.

Used Car Prices: Are They Going Down?

For used cars, the market has been a bit unpredictable. Remember when people paid high prices for used cars? The latest news says this might calm down.

Experts think used car prices won't change too much in 2024. They've been dropping, but this is just a return to normal, not a collapse. If you're looking for a used car, 2024 might be a good time to find a deal.

Why Are Used Car Prices So Volatile?

There are lots of factors affecting car prices. For this reason, it's tricky to accurately predict what will happen to prices. Here are a few biggies:

Supply Chain and Chips: When factories slowed down production, we all felt the pinch. Chip shortages meant that cars and phones weren't being made as much. Although we are on the road to recovery, these supply issues are still around, and must be considered.
Inflation and Interest Rates: Your money has been on a bit of a rollercoaster ride too. With prices and interest rates going up, financing a car is quite tricky. The price of your new car isn't the whole story. You also need to think about how much it costs to borrow money to pay for it.
The Electric Avenue: Electric vehicles (EVs) are the new kids on the block. Due to better tech and more competition in the market, EVs are getting cheaper to make. Could this mean more people going for EVs in the future? One thing is for sure, the large amount of options means you can get a good deal in this space.

So, What Should You Do?

If you’re in the market for a car in 2024, here’s a bit of friendly advice:

Timing is Key: timing the buying of your car is really important. If you choose to buy at the end of the year or when a model is nearing its end, you could get a sweet deal.
Used Can Be a Gem: Don’t overlook the value of a pre-loved car. With some homework, you can find a reliable and affordable vehicle. Check out our marketplace to browse over 10,000 cars from across the UK.
Knowledge is Power: Before you dive in, do your research. Look at lots of cars and read what other people say about them. Don't be scared to ask for a better price.

Marsh Finance Has Your Back

We are here to get you your next car.

No matter what you are looking for, we can help. It might be a new model fresh out of the showroom, or a used car that you have your eye on. Marsh Finance is here to make your car dreams a reality. Check out our marketplace here and discover over 80,000 cars available across the UK.

And hey, if you're looking to save as much money as possible, check out our guide on how to score the best deal on a used car. It’s packed with insider tips to help you boss the used car market like a pro.

Ready to get started? Swing by Marsh Finance’s marketplace, and let’s get you behind the wheel of a car you’ll love.

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