As 2024 revs up, many consumers are eyeing a new car purchase.
According to Edmunds.com, an estimated 15.7 million new vehicles are projected to be sold this year and prices are expected to stabilize after their recent steep climb.
However, with high interest rates and economic uncertainties, buyers will be treading cautiously.
"We're talking about the cost of borrowing is so high that it is a large deterrent. And on top of that, we know the Fed's not going to move rates for at least 3 to 6 months out,” said Ivan Drury, Edmunds Director of Insights.
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According to Drury, one in five cars sold in South Florida is a luxury vehicle — much higher than the national average.
Drury notes quality, connectivity, safety, and technology are the driving forces behind these purchases, even if it means paying more.
"There are so many attractive options and trim levels when it comes to buying a new car. These vehicles are vastly different from those just 3 to 5 years ago, and we see tremendous leaps and bounds in what people are willing to pay" said Drury.
He advises those eyeing last year’s model to act quickly.
“Anybody who's holding off a couple of weeks from now, maybe thinking in January or February, they're going to score themselves a 2023, That's still on the lot. The odds are very reduced,” said Drury.
He also points out the demand for cars under $50,000 will be high.
“Those are the vehicles you kind of have to act sooner than later. That's almost one where I'd say put a reservation down, maybe buy a vehicle ahead of time. That sounds custom, order it because you have less and less of to just go into the lot, scooping one of those,” said Drury.
He points out that for those with trade-ins, the used car market continues to be favorable as well as those considering an electric vehicle with more options and incentives.
Drury also notes that 2024 may be a good opportunity to switch to electric.
“We do expect that incentives will be flowing. There's a lot of money coming from both the government and the automakers when it comes to electrification. So, if it fits your lifestyle, then this is definitely one of the times to start thinking about it because you're kind of at this golden spot where they're oversupplied,” said Drury.
He suggests before purchasing an electric vehicle, it's crucial to think about charging options. Can you easily charge at your home or apartment?
Ensuring that an EV fits into your daily life is vital in deciding if it's the right choice.
