DETROIT (AP) — Recent vehicle sales within the U.S. rose 2.7% last 12 months as prices and rates of interest eased a bit, making SUVs, cars and trucks just a little cheaper.
Industry analysts say discounts corresponding to rebates and low-interest financing should get even higher as 2025 rolls along, with the largest deals available at dealerships representing automakers that had trouble selling in 2024.
Despite high sales prices that averaged greater than $47,000, automakers sold just over 16 million vehicles within the U.S. last 12 months, Motorintelligence.com said Friday. It was one of the best 12 months for sales since 2019, before the coronavirus pandemic hit. But prices were still 27% above what they were in 2019.
Electric vehicle sales rose 8.8% for the 12 months to just below 1.3 million, beating 2023’s record of 1.19 million. That’s slower growth than the 47% increase in 2023, and EVs face an uncertain future with the chance that President-elect Donald Trump will scrap a $7,500 tax credit when he takes office later this month.
Gas-electric hybrids kept rising in popularity with just over 1.6 million sold, a 36% increase over 2023.
General Motors finished the 12 months with the U.S. sales crown, posting a 4.3% increase for the 12 months, its best performance since 2019. Toyota reported a 3.7% sales jump, while Ford sales rose 4.2%.
Jeep and Ram maker Stellantis, which struggled much of the 12 months with too many high-priced vehicles on its dealer lots, saw a 14.8% sales decline. It was pushed out of fourth place and into fifth by Honda, which posted an 8.8% increase.
Nissan sales were up 2.8% for the 12 months, barely beating Hyundai with sales up 4.8%. Kia sales rose 1.8%.
In the course of the 12 months, the typical sales price of a vehicle fell just below 1%. Ivan Drury, director of insights for the Edmunds.com auto site, said he expects that to proceed at the very least within the second half of the 12 months.
Plus, the Federal Reserve expects two more rate of interest cuts this 12 months on top of three in 2024. That ought to help to lower monthly payments just a little more, Drury said. The typical auto loan rate fell from last 12 months’s peak of seven.3% in July to six.6% in December, Drury said.
He said he doesn’t think prices will change much in the primary three months of this 12 months as automakers attempt to clear their numerous 2024 models. “In the event you’ve got six months or more, then just wait it out,” he said. “Farther on the market’s the potential for higher things to return.”
To get an ideal deal, buyers can have to change brands to Stellantis or possibly Ford, which have more inventory on their dealer lots than Honda and Toyota, Drury said.