Used cars have always provided a more affordable alternative to buying new ones. What can we expect from the used car market in 2024, though?
Get the Scoop Before You Buy
Although it’s been several years since COVID-19 first threw the world’s economies into turmoil, some impacts linger longer than others. The used car market is still changing to keep up.
Sales and delivery models have changed, and prices have been volatile. With a new year approaching, it’s time to look at these trends and lay out what the used car market has in store for 2024.
Renewed Supply Places Downward Pressure on Prices
Much to drivers’ relief, the chaos that ensued during and in the aftermath of the recent pandemic is subsiding. Global supply chains are back in operational shape, and new vehicle inventory shortages are over.
For several years, a lack of new inventory has driven up demand for used cars. Now, that trend is finally reversing. With automakers offering incentives on newly manufactured vehicles, fewer drivers will turn to used cars.
Affordability will limit the market in 2024, which could create some industry-wide challenges. For buyers, though, the potential for lower prices brings relief.
Can You Still Find a Decent Car for Under $10k?
While you can still find a decent car for under $10k, the hunt has become much harder. The problem isn’t just that supply remains limited. Recent increases in wages have also played a role. The net effect is that while prices are no longer prohibitively high, they have not returned to pre-pandemic levels.
Drivers looking for a good deal should keep long-term value in mind. While it’s possible to find used cars for under $10k on the private market, it’s hard to find one in good shape. Private sellers rarely disclose all known problems, and there’s little accountability.
Dealerships still sell decent vehicles at lower prices. However, they are harder to find. Instead of taking a risk with a private sale, wait until the right thing comes up at a local dealer or ask about financing a slightly more expensive vehicle.
More EV Models Are Available Than Ever
Electric vehicles have been around long enough now that it’s not uncommon to see them used. They still tend to be more expensive than combustion-powered alternatives, but as more automakers shift focus to EVs, that will change.
In 2024, drivers should still expect higher prices for plug-in electric and hybrid used cars. They can also expect to find a wide selection within a reasonable price range.
When buying used EVs, pay attention to vehicle histories and warranties. The batteries are expensive to replace. However, they usually have eight-to-ten-year warranties.
Drivers Have Multiple Buying Options
During the pandemic, sales models changed significantly. Companies offering new car delivery established themselves, and dealerships altered their business models to keep up. Now, many dealers will let drivers purchase cars entirely online.
Despite the continuing popularity of online sales, many drivers are excited to head back to the showrooms to buy their first post-pandemic cars.
For some, it’s a matter of wanting to test-drive multiple models. For others, it just feels normal, and after the past few years, normal is nice.
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