Sales of new cars are projected to reach 15.7 million units, marking a slight increase from 2023. The availability of new vehicles has improved significantly as inventories return to pre-pandemic levels.
The used vehicle market is expected to grow modestly, with total sales anticipated to reach 36.2 million units. Retail sales of used vehicles will see a minimal increase, while certified pre-owned (CPO) sales are forecasted to rise by 3% compared to 2023.
EV sales will continue to grow, although at a slower pace than previously anticipated. EVs are expected to account for about 9% of total vehicle sales. Increased model availability, more incentives, and generous federal tax credits are expected to drive this growth.
The broader economic environment will influence the auto market, with expectations of slow economic growth and potentially declining interest rates. This should help improve vehicle affordability slightly, though high interest rates and inflation will continue to pose challenges.
The market is shifting away from the seller's market that emerged during the pandemic. Increased inventory and competitive pricing are expected to provide consumers with better deals, though dealership margins might compress as a result.