You should consider delaying purchase of a new car until 2024, when you may be able to benefit from lower interest rates, more discounts, and electric vehicle rebates.
Here are the three reasons why:
1. Lower interest rates
While the Federal Reserve has been raising interest rates in an effort to combat inflation, it may start cutting rates again in early 2024 if inflation begins to come down further. Additionally, lower inflation expectations could lead to lower interest rates, even if the Fed does not cut rates. If interest rates fall, auto loan rates will likely fall as well. This could save consumers money on their monthly car payments.
2. More discounts
New car dealer inventory is piling up, a sign that consumers may be able to get a better deal on a new car in 2024. According to Cox Automotive, the total U.S. supply of available unsold new vehicles climbed to 2.21 million units in November 2023, the highest level since early spring 2021. That is up 60% from the same time a year ago, but 35% lower than pre-pandemic 2019.
3. Electric vehicle rebates
Starting in January 2024, you can get electric vehicle rebates at the point of purchase. This could make EVs more affordable, especially if you can get the rebates at the point of purchase.
Ultimately, the decision of whether or not to delay buying a new car until 2024 is yours. You should carefully consider your individual needs and circumstances before making a decision. However, the three factors discussed in this article – lower interest rates, more discounts, and electric vehicle rebates – may make waiting until 2024 a wise choice for many people.