Will car prices drop in 2024?

Heading into 2024, Canadians looking to buy a new or used car may face prices similar to those seen in 2023. Along these lines, auto experts believe that car prices will not return to pre-pandemic levels anytime soon. During the Covid-19 pandemic, supply chain problems for semiconductors and car computer chips have been a big factor in rising prices and shortages. Cars have changed. But as 2023 ends, the situation of car inventory has improved. According to Auto Trader's 2023 report released in September, new car supplies rose from the previous month and new car prices fell in October.

Car sales in 2023 have increased by 11.8 percent compared to the previous year due to increased supply. Increased demand for new models means that there is less demand for used cars, and because of this, their prices have fallen since the end of the summer. Not only will sales of gasoline cars increase in 2024, but according to experts, With the release of more than 40 electric vehicle (EV) models this year, sales of these types of cars will also increase. According to Statistics Canada, electric vehicles accounted for 12.1% of all new motor vehicle registrations in the third quarter of 2023. This figure was around 8.7% in the same period of 2022.

With the federal government recently announcing that 100 percent of cars sold in Canada must be zero-emission by 2035, electric cars will gain more attention among Canadians, experts believe.

Although inventory of new and used cars has increased, the Ontario Motor Vehicle Industry Council (OMVIC) said the market has not yet fully recovered for prices to drop significantly.

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