What are the 2024 auto trends to watch out for? After the last few years’ rollercoaster ride that included a drop in electric vehicle sales, strikes in American factories, continuing disruptions in the supply chain, and higher material prices, it’s no wonder the auto market is likely holding its breath to see what 2024 will bring.
That’s why we’re sharing the top car trends for 2024. Fortunately, the auto industry forecast appears to show a promising shift back to its usual slow yet steady sales growth. If this prediction holds, it will usher in a refreshing change of normalcy after a tumultuous four years!
Top Car Trends for 2024
We’ve searched through projected data and expert analysis to determine the most significant trends set to impact the automotive industry this year.
Economic outlook: Sluggish growth, yet no worries of a recession
The economic forecast for 2024 suggests a slowdown due to higher interest rates, increased inflation, and a weakened labor market, which may limit consumer spending. However, unemployment rates are projected to stay low, and wages are still anticipated to remain above average, leading to a predicted steady stream of vehicle sales.
On a positive note, loan rates may decrease slightly, making vehicles more affordable for consumers. While consumer debt is expected to grow slowly and credit remains tight but stable, this economic outlook is much better than the potential of a recession.
Higher supply will drive lower prices, slightly increasing auto sales
This year, new inventory levels will return to pre-pandemic norms. This increase in supply is expected to lead to higher incentives and discounts, creating pressure to drop vehicle prices.
Despite a forecasted flat growth in retail new-vehicle sales and a modest less than 1% increase in the used-vehicle market, the combination of increased inventory and lower prices is projected to drive the automotive industry towards a favorable outcome in the coming year.
Challenges for dealerships as the seller’s market comes to an end
Concerns about interest rates and weaker profit projections cause dealers to be less optimistic about the future. While opportunities for higher margins in used vehicles show promise, new vehicle sales will remain difficult. Rising manufacturer’s suggested retail prices (MSRP) and demand for more expensive models will drive sales down, leading to lower profits. Also, the costs related to electric vehicle sales will eat into the dealerships’ bottom line.
More growth anticipated in the electric vehicle market
The electric vehicle (EV) market, including hybrids and fully electric vehicles, will see a leap of close to 22% growth. Even though not everyone is convinced about EVs, the industry plans to show more benefits to average consumers and usher in more models, discounts, ads, and efforts to sell EVs. Also, federal incentives and more people leasing EVs add to the positive outlook for this market.
Make the Most of these 2024 Auto Trends
Choose Bruner Motors Chrysler Dodge Jeep Ram Fiat for your next car purchase. Visit us in Stephenville, TX, and discover why we’re the go-to dealership in the area. We value your satisfaction, and we’ll work to exceed your expectations. Experience our commitment to excellence firsthand – visit Bruner Motors today!
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