DETROIT — Last year, new vehicle sales in the United States saw a 2.7% increase, as a slight decrease in prices and interest rates made SUVs, cars, and trucks somewhat more accessible for buyers.
Industry experts anticipate that promotions, including rebates and attractive financing options, will improve further as 2025 approaches. They predict that significant discounts will be most prevalent at dealerships associated with automakers that faced sales challenges throughout 2024.
According to Motorintelligence.com, despite average sales prices exceeding $47,000, manufacturers sold more than 16 million vehicles in the U.S. last year, marking the highest sales figures since 2019, prior to the onset of the coronavirus pandemic. However, it’s important to note that the prices remain 27% higher than those from 2019.
Electric vehicle sales experienced an 8.8% increase over the year, totaling nearly 1.3 million units sold, surpassing the 2023 record of 1.19 million. This growth, however, represented a slowdown from the remarkable 47% surge seen the previous year, and the future of EV sales remains uncertain with President-elect Donald Trump considering the elimination of a $7,500 tax credit as he takes office this month.
Additionally, the popularity of gas-electric hybrids continued to climb, with over 1.6 million units sold, marking a 36% increase compared to 2023.
General Motors captured the top spot in U.S. sales, achieving a 4.3% increase, the company’s best showing since 2019. Toyota reported a 3.7% sales increase, while Ford also saw a growth of 4.2%.
On the other hand, Stellantis, the maker of Jeep and Ram, encountered difficulties throughout the year due to an excess of high-priced vehicles in its showrooms, resulting in a 14.8% sales decline. This drop pushed the company down to fifth place, overtaken by Honda, which experienced an 8.8% sales growth.
Nissan’s sales rose by 2.8% over the year, barely edging out Hyundai, which saw a 4.8% increase in sales. Kia recorded a 1.8% rise.
Throughout 2024, average vehicle sales prices dipped just under 1%. Ivan Drury, a director of insights at Edmunds.com, expressed expectations that this trend will persist, at least in the latter half of the year.
Furthermore, the Federal Reserve anticipates two more cuts to interest rates this year, building on three reductions from 2024. This could contribute to marginally reduced monthly payments, according to Drury. He noted that the average auto loan interest rate decreased from a peak of 7.3% in July to 6.6% in December.
Drury believes that prices will remain mostly stable during the first three months of this year as manufacturers work to clear their lots of 2024 models. He suggests that customers with a timeline of six months or longer may benefit from waiting, as better deals could emerge down the line.
To secure the best deals, buyers might consider exploring offers from Stellantis or Ford, which have higher inventories compared to Honda and Toyota. Even Toyota, which has maintained among the lowest inventory levels in the industry—sufficient for merely five days’ worth of sales—has indicated plans to enhance discounts this year as vehicle supplies begin to rise.
“Incentive spending will likely increase for both the industry and for us next year, as availability improves,” stated David Christ, vice president of Toyota North America.
