With car prices being a hot topic recently, everyone’s eyes are on the horizon for 2024. Will car prices drop further, or will the market stabilise, leaving buyers pondering their next move? If you’re planning to navigate the car market maze, whether it’s to snag a new car or opt for a pre-loved gem, understanding the trends could save you a packet. Let’s look at what we can expect for car economics in the coming year.
New Car Prices: What’s the Deal?
Used Car Prices: Are They Going Down?
New Car Prices: What’s the Deal?
So, you’re thinking about buying a new car this year and wondering if you’ll need to break the bank or if you’ll find a deal that’s too good to pass up. While we can’t say for sure (because, let’s face it, no one’s got a crystal ball), a few signs are pointing towards the possibility of new car prices taking a bit of a chill pill.
The car industry has had its fair share of ups and downs, thanks to all sorts of challenges —from global supply chain snarls to semiconductor shortages that threw a wrench in production lines. But, as these headaches start to ease, we might see some relief in prices.
Don’t expect a fire sale overnight, but there’s a cautious optimism that prices could become a bit more buyer-friendly. Cox Automotive, a big name in car market analysis, is hinting at a slight decline in the madness, suggesting new car prices might not be as sky-high compared to the rollercoaster ride we’ve been on since the COVID-19 pandemic.
Used Car Prices: Are They Going Down?
Switching gears to used cars, the scene’s been just as volatile. Remember how folks were paying top dollar for used vehicles not too long ago? Well, the latest chatter suggests this frenzy might start to simmer down.
According to the car gurus, used car prices could begin to stabilise in 2024. Sure, they’ve been through a bit of a freefall recently, but the word on the street is that this drop is more about returning to normal than a sign of a total collapse. If you’ve been eyeing a used car, 2024 might offer a more reasonable landscape to find a good deal.
Why Are Used Car Prices So Volatile?
Many factors are stirring the car price pot, making it tricky to pinpoint where things will land. Here are a few biggies:
- Supply Chain and Chips: The whole world felt the pinch when factories slowed down, and we didn’t have enough chips to go around for everything from your smartphone to your car. While we’re starting to see the light at the end of the tunnel, these issues haven’t vanished into thin air just yet.
- Inflation and Interest Rates: Money’s been a bit of a rollercoaster ride, too. With prices increasing and interest rates following suit, financing a car isn’t as straightforward as it used to be. This means your dream car’s sticker price is only part of the story; you must also factor in the cost of borrowing cash to clinch the deal.
- The Electric Avenue: Electric vehicles (EVs) are the new kids on the block that everyone’s talking about. Thanks to better technology and more competition, they’re getting cheaper to make, which could mean more people jumping on the EV bandwagon without breaking the bank.
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: Like hunting for the perfect avocado, timing your car purchase can make all the difference. End-of-year sales or model year-end clear outs can be golden opportunities to snag a bargain.
- 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 homework. Compare models, check reviews, and don’t be shy about negotiating to get the best deal possible.
Marsh Finance Has Your Back
Navigating the car buying process in 2024 doesn’t have to be done alone.
At Marsh Finance, we’re all about helping you find the sweet spot between the car of your dreams and a deal that doesn’t keep you up at night. Whether you’re looking to finance a brand-new ride straight off the showroom floor or find a used car that’s new to you, we’ve got the tools and expertise to help you make it happen. Click here to check out our used car marketplace.
And hey, if you’re all about getting the most bang for your buck, check out our guide on how to score the best deal on a used car. It’s packed with insider tips to help you navigate 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, with a finance plan that fits.
Representative Example
Rates from 12.9%
Representative example: borrowing £10,000 over 60 Months with a representative of 23.0% APR, an annual interest rate of 23.0% (fixed) and a deposit of £0.00, the amount payable would be 59 repayments of £269.58 per month, with one final repayment of £279.58 (which includes the option to purchase fee of £10.00), with a total cost of credit of £6,184.80 and a total amount payable of £16,184.80. Marsh Finance Limited are a lender, not a broker.
Marsh Finance Limited are a lender, not a broker.
This is for illustrative purposes only and is not a quote or an offer of finance.