Cars.com, a technology firm serving the vehicle industry, has released its 2024 Automotive Trends report, forecasting the predominant behaviors of the new and used car markets in the coming months.
Last year saw the return of pre-pandemic norms to the industry, including higher rates of manufacturing, lower prices, and stable vehicle inventories. Some of these automotive trends are expected to persist throughout 2024. Cars.com expects buyers to continue prioritizing affordability, noting that almost 50% of surveyed consumers are aiming to shop for sub-$30,000 listings. However, even as transaction prices have dropped slightly under the weight of OEM incentives, the company notes that only 12% of new vehicles cost less than $30,000.
Due to the limited availability of affordable models, Cars.com expects the used car market to remain under tight inventory pressures throughout the coming months. However, both buyers and sellers of preowned vehicles are in luck. Trade-in values, while lower than their pandemic-era peak, are still higher than in 2019, giving consumers more cash for a down payment. Dealers can also use this automotive trend to attract consumers and boost their trade-in rates, allowing them to fill out their used vehicle inventories.
Last year was also marked by the arrival of several new factors that seemed to have caught the sector off guard. Included in these unprecedented changes was the digitization of the car buying experience, a shift that has been difficult to process for dealers, many of whom have conducted business in the same manner as their former managers or owners. This automotive trend will continue to shape the car business throughout 2024.
That being said, Cars.com notes that this technological shift may occur slower than some think. Only 16% of millennials prefer to conduct the car buying process entirely online. The number is even lower than Gen Z, of whom only 9% wish to purchase through exclusively digital means. One automotive trend that younger buyers are changing, however, is the average age of vehicle ownership. Presently, 42% of Gen Z drivers purchased their first car between the ages of 16 and 18, compared to only 32% of millennials.
