Last year, new vehicle sales in the U.S. saw a 2.7% increase, driven by slightly lower prices and interest rates, making SUVs, cars, and trucks more affordable.
According to global market research firm Motor Intelligence, on January 4, automakers sold more than 16 million vehicles in the U.S. last year despite high sales prices of more than $47,000.
That was the best sales performance since 2019, before the pandemic. However, prices were still 27% higher than in 2019.
Industry analysts predict that discounts such as rebates and low-interest financing will improve further in 2025. The biggest deals will be made at dealerships representing automakers that struggled in 2024.
Electric vehicle (EV) sales rose 8.8% last year to nearly 1.3 million units, surpassing the 1.19 million units in 2023.
Gasoline-electric hybrid sales continued to rise, reaching more than 1.6 million units, up 36% from 2023.
General Motors ended the year as the top U.S. automaker, posting a 4.3% increase, its best performance since 2019. Toyota recorded a 3.7% increase, while Ford saw a 4.2% rise in sales.
On the other hand, growth is slow compared to the 47% increase expected in 2023, and EVs face an uncertain future as President-elect Donald Trump is expected to repeal the $7,500 tax credit when he takes office later this month.
Ivan Drury, director of Edmunds Insights, noted that the average selling price of vehicles has fallen less than 1% through 2024. He added that they expect this trend to continue at least through the second half of the year.
The Federal Reserve also predicts two additional rate cuts this year, following those in 2024.
Drury mentioned that the decrease should help lower monthly payments even further, adding that the average auto loan rate fell from 7.3% in July last year to 6.6% in December.
He expects flat pricing for the year’s first three months as automakers work to clear out their 2024 models.
Most Commented