The state of new car incentives and pricing is showing some notable trends in May 2024. Car incentives are facing some adjustments due to current market conditions. Our research found that High Prices and Interest Rates are a major factor. New car prices are expected to remain high throughout 2024. While prices might trend slightly downward over the summer, they are still near record levels.
This is largely due to high interest rates, which make car loans more expensive (CarEdge) (CarEdge). Yet, despite the high prices, there are still various incentives available. For example, cash offers range from $400 to $7,500, depending on the make and model. Lease deals are also prevalent, with options like the 2024 Hyundai IONIQ 6 available for as low as $189 per month (CarEdge) (TrueCar).
Inventory levels for new cars have improved compared to the past few years, but they vary by brand and model. For instance, Mazda and Hyundai have high inventory levels, which might lead to better deals for consumers. In contrast, brands like Toyota and Honda have moderate inventory levels (CarEdge). Negotiating can still help secure a better deal. Being aware of local inventory and price trends can provide an advantage when dealing with dealerships (CarEdge).
As of May 2024, new car inventory days' supply varies significantly by manufacturer. Here's a snapshot of the current supply levels for some major automakers:
- Toyota: The RAV4 has a 30-day supply, the Camry has a 37-day supply, and the Corolla has a 34-day supply. Toyota generally maintains low inventory levels compared to other brands (CarEdge).
- Honda: The CR-V has a 47-day supply, the Civic has a 49-day supply, and the Accord has a 65-day supply (CarEdge).
- Hyundai: The Tucson has an 89-day supply, the Elantra has a 104-day supply, and the Santa Fe has a 56-day supply (CarEdge).
- Kia: The Sportage has a 67-day supply, the Forte has a 63-day supply, and the Telluride has a 56-day supply (CarEdge).
- Mazda: The CX-5 has a 141-day supply, the CX-30 has a 129-day supply, and the CX-50 has a 94-day supply (CarEdge).
- Subaru: The Outback has a 94-day supply, the Crosstrek has a 75-day supply, and the Forester has an 82-day supply (CarEdge).
On average, the overall industry days' supply as of early May 2024 stands at 76 days, with some brands and models having significantly higher or lower levels (Cox Automotive Inc.) (Cox Automotive Inc.). This indicates a varied market where inventory levels can differ greatly between manufacturers, influenced by factors such as production rates, demand, and specific market strategies.
