From Time:

New car buyers have the upper hand as prices fall farther below MSRP. Prices are down 2.4% in the past 12 months. Potential for U.S. car prices to fall even more in 2024 as vehicle inventory bounces back, allowing for negotiating discounts once again.

Average new car costs nearly $10,000 more than it did in December 2019. Luxury cars now make up about 20% of the market, and the average price of a non-luxury brand car is now $45,283. Average discount on a new vehicle has surpassed $1,000 for the first time since April 2021.

Average incentive package increased to 5.5% of the transaction price in December. Some of the largest car discounts and incentives are available on EVs.

EV prices have dropped nearly 18% in the past year. Hyundai is offering up to $7,500 of bonus cash on certain electric vehicle models.

Financing conditions remain tough, with the average auto loan rate at about 7.4% currently. Buyers are advised to pay cash or make a big down payment.

Buyers are encouraged to know their credit score and improve it if necessary. Inventory of new vehicles in the U.S. has increased to about 2.7 million, allowing for better negotiating and multiple deals.

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Read more: New Car Deals: Prices Drop and a Buyer’s Market Returns