Automaker Discounts Give Car Sales a Lift

Car shopping in 2024 started to get back to normal for the first time this decade, with ample choice on the dealership lot and even some bargains for shoppers.

- RYAN FELTON

After years of depressed inventory stemming from pandemic-era supply chain problems, U.S. dealers' stock levels have largely recovered. That has put pressure on retailers and automakers to more aggressively price their unsold vehicles.

Car buyers received about $3,400 in discounts and other incentives on average during the busy December shopping season, up more than 25% from a year earlier, according to research firm J.D. Power. The offers have included low and zero-percent interest rates, cash-back offers and cheap leases, especially on electric vehicles.

The increase in promotions in recent months has offered inflation-weary car shoppers some relief after several years of having to shell out sums near or even above the sticker price. The stronger promotions have helped boost overall U.S. vehicle sales.

Industrywide U.S. sales rose by about 7% in December, according to a J.D. Power forecast. Most automakers are scheduled to report their latest sales tallies Friday.

"There are good deals to be had out there," said Geoffrey Pohanka, a Maryland-based dealer who sells Chevrolet, Jeep, Nissan and other brands.

For the year, U.S. vehicle sales are expected to rise 3%, to about 16 million vehicles sold, decelerating from 12% growth in 2023. Industry forecasters expect sales to edge slightly higher again next year.