New vehicle sales in the U.S. increased by 2.7% last year, driven by more affordable prices and interest rates. Industry analysts predict that discounts, such as rebates and low-interest financing, will become even more attractive in 2025, especially at dealerships representing automakers that faced challenges in 2024.
Despite the average sales price exceeding $47,000, over 16 million vehicles were sold in the U.S. in 2024, marking the best year for sales since 2019. However, prices remained 27% higher than in 2019.
Electric vehicle sales saw an 8.8% increase, reaching just under 1.3 million units, surpassing the previous record set in 2023. Gas-electric hybrids also gained popularity, with sales totaling just over 1.6 million, a 36% increase over 2023.
General Motors secured the top spot in U.S. sales with a 4.3% increase, followed by Toyota with a 3.7% jump and Ford with a 4.2% rise. Stellantis, the maker of Jeep and Ram, experienced a 14.8% decline in sales, dropping to fifth place behind Honda, which posted an 8.8% increase.
As for pricing trends, the average sales price of vehicles decreased slightly, and experts anticipate this trend to continue in the latter half of the year. The Federal Reserve is expected to implement two more interest rate cuts in addition to the three in 2024, which could further reduce monthly payments. Auto loan rates also decreased from 7.3% in July to 6.6% in December.
Looking ahead, experts suggest that prices may not fluctuate significantly in the first quarter of the year as automakers aim to clear out 2024 models. Consumers seeking great deals may consider switching brands to Stellantis or Ford, which have higher inventory levels compared to Honda and Toyota. Toyota, despite having limited inventory, plans to increase discounts as vehicle supplies improve.
