Will car prices come down in 2024? Industry experts share their outlook

globalnews.ca:

see similar prices to what was seen in 2023, with automotive experts saying not to expect the cost for a vehicle to return to pre-pandemic levels anytime soon.During the COVID-19 pandemic, inventory became a big factor due to supply chain issues impacting semiconductors and automotive computer chips, and with it came higher prices due to fewer new and used cars available for purchase.“So when there (are) fewer cars sold and new cars sold, obviously it has a direct impact on the used market,” Baris Akyurek, vice-president of insights and intelligence at Autotrader.ca, told Global News in an interview. “That’s why we have been seeing inflated prices.”As 2023 came to a close, however, Akyurek said it has been a “pretty positive” year in terms of availability.According to Auto Trader’s 2023 trends report released in September, the new car supply had increased from the month prior, with the organization predicting modest increases to inventory in the coming years.

New car prices also saw a decline in October, signalling there could finally be a peak in price due to an oversupply of vehicles even with the demand for new cars.In fact, it notes the new car supply is at its highest level since the middle of 2021, though it still is trying to catch up with “pent-up demand,” with Akyurek explaining there were still 1.3 million fewer vehicles sold between 2020 and 2022.This week, DesRosiers Automotive Consultants reported that auto sales jumped 11.8 per cent in 2023 compared to the year prior because of that increased supply. That marks th biggest year-over-year increase since 1997.Brian Kingston, president of the Canadian Vehicle Manufacturers Association (CVMA), said that an increase in sales will continue this year with a “return