DETROIT (AP) — According to industry analysts, new vehicle sales in the United States saw a 2.7% increase last year, attributed to a slight easing in prices and interest rates, making SUVs, cars, and trucks slightly more affordable for consumers. It is anticipated that discounts such as rebates and low-interest financing will become more attractive as the year progresses, particularly at dealerships representing automakers who faced challenges in selling vehicles in 2024.
Despite an average sales price exceeding $47,000, automakers managed to sell just over 16 million vehicles in the U.S. in the past year, marking the highest sales performance since 2019, predating the impact of the coronavirus pandemic. However, prices still remained 27% higher than those recorded in 2019. Electric vehicle sales experienced an 8.8% growth, reaching just under 1.3 million units in the year, surpassing the previous record of 1.19 million set in 2023. This growth rate was notably slower than the 47% surge witnessed in 2023, and the future of EVs remains uncertain due to the potential repeal of a $7,500 tax credit under the incoming administration.
Gas-electric hybrids continued to gain popularity, with sales exceeding 1.6 million units, representing a 36% increase over 2023 figures. General Motors clinched the top spot in U.S. sales for the year, reporting a 4.3% increase, its strongest performance since 2019. Toyota followed with a 3.7% rise in sales, while Ford recorded a 4.2% increase. Stellantis, the parent company of Jeep and Ram, faced a tough year with a 14.8% decline in sales due to an overabundance of high-priced vehicles, consequently slipping to fifth place behind Honda, which posted an 8.8% sales boost. Nissan and Hyundai saw modest increases of 2.8% and 4.8%, respectively, with Kia also recording a 1.8% rise in sales.
Throughout the year, the average sales price of vehicles dipped by just under 1%. Ivan Drury, director of insights at Edmunds.com, predicted that this trend may continue, especially in the latter half of the year. Additionally, the Federal Reserve is anticipated to implement two more interest rate cuts in the coming months, building on the three cuts made in 2024. This move is expected to further reduce monthly payments for consumers, with the average auto loan rate dropping from a peak of 7.3% in July to 6.6% by December.
Drury suggested that prices are likely to remain stable in the first quarter of the year as automakers seek to clear out their remaining 2024 inventory. He advised consumers to exercise patience for potentially better deals later in the year. To secure a favorable bargain, buyers may need to consider switching to
