Hope Thomas in her new 2024 Kia Sorento Hybrid in Exton, Pa. As pandemic shortages are winding down, automotive choices are rising on dealer lots.After five years with her 2019 Volkswagen Atlas, Hope Thomas faced a big decision: drop four figures on inspection repairs or find a new car before the inspection expiredShe’d grown weary of the SUV’s thousand-plus-dollar repair bills and 20 mpg.
Interest rates pushed her from shopping for a used car into something new. She ultimately bought a 2024 Kia Sorento HybridThomas’ story is emblematic of the state of car sales in the Philadelphia region today: People are finding more inventory online and on dealer lots, though better deals, and perhaps sales numbers, are being sacrificed because of higher interest rates on car loans.Cox Automotive reports 2024 is expected to beat 2023 in sales but with no real home runs.
Vehicle sales went from 353,000 in 2021 to a low of 286,000 in 2022, and back to 308,000 in 2023, Mazzucola said.Those numbers track with data and predictions for the U.S. from Automotive Forecast Solutions in Chester Springs. Industry watcher Sam Fiorani said strength in the market pushed the forecast for 2024 up to just over 16 million vehicles sold.
“More and more dealers are loading up with inventory,” Fiorani said. “Nationwide we’re back at levels that are pre-COVID.”Interest rates can be a struggle for consumers. Long accustomed to low-single-digit APRs for auto loans, rates are now nearing or exceeding 10% for many customers. “They’re having to discount these vehicles more because there are more vehicles on the lot,” he said.
S&P Global Mobility notes that in its recent survey of U.S. average vehicle age, the number has risen by two months, to a new record of 12.6 years in 2024.Another change in the market is the push for electrification. After a banner year for EV sales in 2023, analysts such as Fiorani see a challenge in keeping the vehicles’ sales strong now that the new technology’s early adopters are sated.