Lower Financing Costs and Pent-Up Demand to Drive 2024 Car Purchases, Dave Cantin Group Survey Predicts

Respondents to a recent Dave Cantin Group and Kaiser Associates survey anticipate interest rate decreases in mid-to-late 2024 to release pent-up demand, leading to higher auto sales, particularly for those financing through both traditional and alternative methods. 68% expect to purchase a vehicle in the next year, while 27% reported putting off purchasing one over the last two years due high interest rates. A further 16% bought a cheaper vehicle due to higher financing costs. For their next purchase, 35% of consumers expect to use traditional financing, 12% expect to use alternative financing (such as peer-to-peer loans, manufacturer financing, etc.), while 42% will pay in full. The remaining 11% will use leasing, subscriptions, and other methods.