Car Prices May Drop for First Time in a Decade

Car prices have been rising year after year for more than a decade, but the Wall Street Journal reports the streak might finally end in 2024. The average out-the-door price paid for a new car was a shade under $45,000 in June, down 3% when compared to last year, according to JD Power. The problem for would-be buyers numbed by sticker shock is that the decrease is barely noticeable because of high interest rates. Monthly car payments hit a record $740 in the second quarter, per the Journal. "We've seen customers who bought a premium car over the last few years coming back to reality," John Patterson, a dealer with Hyundai, Kia, and Mazda in Southern California tells the newspaper.

Meanwhile, sales growth is cooling. The New York Times, citing data from market research firm Cox Automotive, reports that 4.1 million new cars were sold in the second quarter, about on par with last year. But it's a "marked slowdown" from the first quarter, when sales were up 5%. "The market is roiled by uncertainty," Cox economist Jonathan Smoke tells the Times. "We probably can't quite keep the pace of sales of the first half, but we aren't expecting a collapse in sales." (Tesla delivered fewer vehicles in the second quarter, though it beat expectations.)