Used Car Prices by State 2024 (2024)

FAQs

Will used cars be cheaper in 2024? ›

Retail used car prices are falling in 2024

Hybrid and EV prices remain elevated above the overall market, but the gap is narrowing. The average transaction price for an electric vehicle is now 16.7% higher than the overall market. That's less than the 20% premium for EVs we saw early in 2023.

Experts say that 2024 will be the best year to purchase a new car since 2019. As interest rates slowly drop throughout the remainder of the year, payments will become more manageable. Don't overlook manufacturer rate promotions, as they can save you thousands of dollars.

Ohio is the place to be for inexpensive used cars. The Cleveland-Akron area has the lowest average used car price in the U.S. Three Ohio metro areas make the top 10 list, but this metro takes top spot by $164.

Used vehicle prices are expected to fall by 0.7% in 2024 from 2023. In 2025, prices are projected to rise by 2.5% from 2024. Used retail sales are projected to rise by 3.2% to 19.6 million in 2024 from 19 million in 2023.

Auto loan rates are expected to stop rising and possibly start descending in 2024, but they'll likely remain elevated in comparison to recent years (alongside the broader interest rates environment).

October through December is a good time to buy a used car. These months coincide with the peak new-car buying season at the dealership, which means more trade-ins are entering the used car inventory.

S&P Global Mobility projects calendar year 2024 new vehicle sales volume to reach approximately 16.0 million units, growth of over 2%, or an incremental 374,000 units, from the 2023 level.

If your goal is to save on a pre-owned vehicle, it's advisable to seek one that has already undergone most of its depreciation. This entails finding a car that is at least two years old, but ideally between three and four years old.

States like Alaska, Montana, Oregon, Delaware, and New Hampshire stand out due to their lack of statewide sales tax, as well as generally low unexpected fees. Iowa is also noteworthy for its affordable insurance rates, averaging less than $720 annually.

What is the cheapest state to purchase a car? ›

As you can see, New Hampshire is the most affordable state for new and used car purchases. It's worth noting that Florida and Oregon are viable choices. Florida's lowest starting cost can explain its unanticipated expenses. Furthermore, Florida cars will be in much better shape, which is a huge long-term benefit.

Himachal Pradesh has one of the lowest rates in India.

If you CAN wait until year-end sales, expect even better deals in December 2024. Looking at the used car market, there's good news for patient buyers. Used car prices have been falling for months, and we expect prices to fall further in the second half of 2024.

At the end of 2023, the average price of a used car was $28,371, 4.4% less than the average a year earlier⁵. New and used car prices continued to fall in the first quarter of 2024. Industry experts predict that used car prices could decrease by as much as 14% on average by the end of 2024⁶.

We almost forgot what that feels like, but our data show 2024 could shape up to be a buyer's market provided you're looking to buy new. New-car inventory increased by 36% year over year, with inventory levels close to what they were in February 2021 before pandemic shortages really started to hit.

Dealerships are making way for 2025 models, offering deeper discounts on select cars. Some dealers may also be willing to offer additional discounts, especially on outgoing 2024 models. Make sure to shop around to find the best deal on the car you want to purchase.

New Car Prices – August 2024 Update

According to the most recent data from Cox Automotive, the average transaction price for new cars is $48,644. That's down 0.6% year-over-year, but up 0.6% since last month.

Car Prices Will Likely Continue To Decrease

“It's difficult to predict whether the cost of owning or purchasing a car will decrease in the coming year,” Meniane said. “Last month, the average price for a new vehicle was [$47,936] — a [1.4%] dip from last year, according to the latest KBB data.