Cars.com Inc., an audience-driven technology company empowering the automotive industry, reveals the first half of 2024 has brought notable changes to the automotive industry in its Industry Insights Report. This comprehensive report, crafted by Cars Commerce's expert data analysts, delves into macro and micro automotive market insights by analyzing supply, demand, pricing and consumer behavior data from across the company's platform, including Cars.com®, Dealer Inspire and AccuTrade. 

"The car market continues to recover and evolve, with June seeing ongoing price stabilization. When you take a step back for a broader perspective, however, the market has seen sweeping changes since the first half of 2024, particularly with the growing influence of electric vehicles as consumer demand and inventory continue to increase," said Rebecca Lindland, senior director of industry data and insights at Cars Commerce. "And compared to five years ago when the market was last stable, today's market is almost unrecognizable. Consumers are paying more than 30% higher prices for new and used cars with more than a million fewer vehicles available on each side of the market — but they're also making significantly more on trade-ins." 

EV Market Transformation:

The EV market has undergone a dramatic transformation, evolving from a niche segment to a mainstream choice for many consumers. Over the last five years, the demand for new EVs has surged by an astonishing 930%. This growth is driven by several factors: a wider range of choices, better access to charging, increased consumer awareness about environmental impacts, supportive state and federal policies, government rebates and tax incentives, and advances in battery technology that offer increased range and alleviates consumer anxiety. Despite a 56% price increase for new EVs since 2019, the first half of 2024 has brought some relief to shoppers. Prices are down 4% compared to the first half of 2023, saving consumers an average of $2,400 per vehicle, and inventory has improved by 53% in the same time period.

The new EV market is not alone in its transformation. Over the last five years, the average price for used EVs has increased by almost 50% from $25,096 to $36,908 and supply has jumped by almost 500%. In the first half of 2024 alone, demand for used EVs has surged almost 40% compared to the first half of 2023. Inventory has grown by 45% in the first six months of the year compared to 2023, adding 38,000 more vehicles for buyers and causing prices to drop nearly 20%, saving consumers over $8,500.

New- and Used-Car Markets: Prices Drop and Inventory Climbs Amid Supply Chain Recovery:

The broader new-car market has also evolved. Consumers are now spending over $11,000 more on a new vehicle, with prices rising 30% from $37,790 to $49,106 over the last five years. Inventory is down 24% in the same time period, resulting in 1.7 million fewer vehicles available for shoppers. Market recovery continues, allowing manufacturers to increase production and resulting in wider availability of new cars. In the first half of 2024, new inventory is up 13% compared to the first half of 2023, and new-car prices have decreased slightly (down 1%), maintaining an average of around $49,000 for the past nine months. 

ABOUT CARS COMMERCE:

Cars Commerce is an audience-driven technology company empowering the automotive industry. The Company simplifies everything about car buying and selling with powerful products, solutions and AI-driven technologies that span pretail, retail and post-sale activities – enabling more efficient and profitable retail operations. The Cars Commerce platform is organized around four industry-leading brands: the flagship automotive marketplace and dealer reputation site Cars.com®, award-winning technology and digital retail technology and marketing services from Dealer Inspire, essential trade-in and appraisal technology from AccuTrade, and exclusive in-market media solutions from the Cars Commerce Media Network. 

Source: prnewswire.com