The average cost of purchasing a new car has increased over the previous few years, but in February, it “only” dropped marginally to $44,045. According to J.D. Power’s February 2024 U.S. Automotive Forecast, the drop in average pricing has increased transaction volume, which has driven expenditure to all-time highs.
Even though the average asking price is somewhat discouraging and disappointing, it significantly decreased from the figures we observed at the end of 2023. December 2023 saw new automobile buyers spend an average of $48,759, even after a rise in manufacturer incentives and rebates.
That increases to 8.1 percent over the previous year when the number of sales days (Sundays, leap year, etc.) is not considered. This would translate to about $40.8 billion in consumer spending this month, setting a record for the most enormous February spending ever.
Buyers should continue to see improvements. The rising inventory levels make it less likely that a vehicle will be marked up and make it easier to find the correct one.
Furthermore, automakers are increasing their incentives, with a projected $66 rise from the previous month.
J.D. Power also reported that the cost of a used car has decreased from $28,121 to $700. Although this is good news for purchasers, it also caused a further decline in trade-in values. Since February 2023, they have decreased by $992, reaching an average of $7,912.
