There’s good news for car shoppers this month. Supplies are up at dealerships and prices on both new and used vehicles are coming down.
According to Kelley Blue Book, new car prices are at their lowest point in almost two years and used car prices are 4% lower than they were a year ago. Last month, the average transaction price of a new car in the U.S. was $47,218, down 1% from March 2023 but still 15.5% higher compared to 2021. The average used car price was $25,540 — 4% lower than a year ago.
Find Out: These 10 Used Cars Will Last Longer Than an Average New Vehicle
For You: I’m a Car Expert: Here are 3 Reasons I’d Never Buy a Used Car From a Dealership
Fully stocked dealerships are also offering more incentives. KBB noted that discounts made up 6.6% of the average sale last month, more than double the number from a year earlier. However, Toyota, Lexus, Hona, Land Rover and Kia dealers are a little understocked, so you aren’t as likely to get a deal from them.
Although price tags are coming down, interest rates are not. The average new auto loan interest rate is 9.7%, up over 80 basis points in a year, according to Cox Automotive, a parent company of Kelley Blue Book. The average rate on a used car loan is currently 14.1%, up 60 basis points year over year. Cox Automotive says consumers can expect lower rates eventually once the Federal Reserve starts cutting interest rates. The financial markets now expect one rate cut at the end of the year.
Rising car insurance costs could also influence your car purchasing decision. The cost of auto insurance has grown so high that KBB encourages car shoppers to get quotes on a car they’re considering buying before putting any money down.
And if you’re looking for older, more affordable models ($15,000 or less), KBB pointed out that these are much harder to find. Would-be new car shoppers began buying up the available used car inventory and Americans are holding onto their cars longer than ever before. The average car is now 12.5 years old. The most accessible used cars are priced between $15,000 and $30,000.
If you’re in the market for a new car, here are some of the biggest discounts in May 2024, according to data from RealCarTips.
Also see six new cars to avoid buying at all costs.
Sponsored: Owe the IRS $10K or more? Schedule a FREE consultation to see if you qualify for tax relief.
2023 Hyundai Ioniq 5 SEL
Be Aware: How To Get $340 Per Year in Cash Back on Gas and Other Things You Already Buy
2023 Maserati Levante GT
-
Average MSRP: $89,095
-
Average discount: $13,665
-
Percentage off MSRP: 15.3%
2023 Ram 1500 Classic Warlock
-
Average MSRP: $51,930
-
Average discount: $7,767
-
Percentage off MSRP: 15%
2023 Maserati Grecale Modena
-
Average MSRP: $74,395
-
Average discount: $10,921
-
Percentage off MSRP: 14.7%
2023 Hyundai Ioniq 6 SEL
2022 Jeep Grand Cherokee 4xe Summit Reserve
2023 Alfa Romeo Stelvio Quadrifoglio
2023 Maserati Ghibli Modena Q4
2022 Ram 2500 Laramie
-
Average MSRP: $66,040
-
Average discount: $8,865
-
% off MSRP: 13.5%
2023 Mercedes EQE Sedan EQE 500 4MATIC+
More From GOBankingRates
This article originally appeared on GOBankingRates.com: 10 Car Models That Will Have Massive Price Drops in May 2024
Source Agencies
