Tips for Buying & Selling in 2024: Unlocking the Best Deals and Trade-In Values During the Spring ‘Bounce’, Expert Insights
Individuals contemplating the purchase of a new car and trading in an older model should target the period from late February to late April, according to a leading car industry economist, as quoted by the Detroit Free Press. Jonathan Smoke, Cox Automotive’s senior VP, and chief economist suggests that this window coincides with tax filing and refund periods in the U.S. This prompts car dealerships to stock up for the anticipated demand surge. Smoke explains that the onset of increased activity is typically in February. Still, momentum wanes as April 15 approaches, aligning with the behavior of consumers who either file early to receive refunds or delay due to owing taxes. He notes that the demand for used cars correlates with the disbursement of tax refunds.
Forecasts
Smoke forecasts that the first half of 2024 will see the highest resale values for used cars. He refers to the increased demand during tax refund season as the “spring bounce,” a time when the usual depreciation of used vehicles is temporarily halted, with the expectation that this trend will repeat in 2024.
According to Smoke, the optimal time for trade-ins falls in March or April. He remarks that currently, used vehicles priced below $30,000 are selling rapidly and are in high demand, a sentiment echoed by Thad Szott of Szott Auto Group. Szott indicates that while the used car inventory has grown, affordable vehicles remain elusive and highly sought after. He advises that the period leading up to March experiences the least depreciation, potentially offering sellers a 5% to 10% better trade-in value.
Despite the peak season being in March, Szott notes that car dealerships begin preparing in January and February. He also points out that the new car supply is now the largest it’s been since the onset of the COVID-19 pandemic and that incentives are expected throughout the year, which can be advantageous for buyers.
Smoke comments on the affordability challenges, especially with higher interest rates, stressing the benefit of negotiating trade-ins to mitigate the cost of a new vehicle. He had previously predicted that 2024 would be an optimal year for purchasing new cars.
Szott advises those considering selling their vehicle not to delay until March, as the market can be unpredictable. He recommends using online resources to assess the value of one’s car and suggests sellers request data from dealerships to substantiate the trade-in value, highlighting that his dealership uses sophisticated software to provide such information.
Source:
