Here goes some news most Americans have been waiting for: The cost of cars and trucks in the United States is finally dropping, and new research shows the downward trend has been quite significant on vehicle prices already. Experts at InvestorPlace.com are warning that the latest developments are, in fact, proof that the auto market crash has begun, especially considering how fast these changes are occurring.
In this environment of higher interest rates, and rising inventory levels, Blue Book values have been consistently declining, with analysts projecting a reversal in the market happening this spring, and alerting that prices are on their way to find a bottom.
We’re officially in a buyer’s market, they say. Dealer incentives are up 102% year-over-year, according to fresh data. We’re now being told that the long-awaited crash is going to give Americans much better changes of finding an affordable vehicle in 2024, and also that the conditions which helped to fuel the auto price bubble and overall inflation for nearly three years are no longer in place, setting in motion the much-needed correction everyone has been expecting for.
Cox Automotive reports that the recent price declines are due to a vastly expanded number of vehicles on dealer lots after years of severe shortages. With more cars and trucks available, the pressures that had sent prices surging are disappearing at last.
At the start of April, American dealers had almost 3 million new cars, trucks, and SUVs on their lots. For comparison, one year ago, that supply was standing at just 1.7 million. This is one of the reasons why many analysts and dealers say 2024 will be the most affordable year of the past five in which to buy a new car or truck.