Sure thing! Here’s the chatty and slightly cheeky rehash of the said article. Remember, HTML tags will be your guide through this roller coaster of a ride.

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Get Set to Zoom Off in Your Dream Car as Car Prices and Loan Interest Rates Gears Down in 2024

Hey, you know this distinguished research firm called Cox Automotive, right? The kind that makes you trust them without flinching? Well, they’ve predicted this delightful piece of news for everyone dreaming of that new car smell – prepare for dropping new car prices and auto loan rates in 2024. Ain’t that a reason to celebrate? Cheers to us, the consumers!

Picture this: dealerships are likely to cram in nearly 3 million shiny, sparkly new cars. Oh, and do you remember that pesky microchip shortage in late 2021? The one that left dealership inventories barely alive with less than a million cars? That’s supposed to be in our rearview mirror this year. Finally!

And here’s something to rev your engine about- inflated car prices? History. You’re likely to see ripe deals and incentives piling up as dealers and manufacturers aim to bring you back in the showroom.

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A Silver Lining After a Rocky Ride

“Expect a bit of a dip in new-vehicle transaction prices,” say the analysts at Cox. But before you start jumping for joy, they also add that discounts, though likely to increase, won’t match those crazy 10% off days of 2019.

In even better news, auto loan interest rates might ease up as we progress through 2024. Inflation cooling down and the potential for the Federal Reserve to cut rates means our dreams of affordable car financing might no longer stay as dreams. Echoes of this can already be heard in what’s happening with mortgages these days. Interesting, isn’t it?

However, before we pop the champers, let’s remember that how much the auto loan rates decrease, well, we’re not absolutely certain. But in Cox’s words, “any reduction will help make vehicles more affordable and provide relief to households navigating financial challenges.”

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Cox vs Edmunds: Battle of the Analysts

In case you’re ready to write us off as biased, we also checked in with Edmunds who gave us their own two cents on this development. Their analysis – ready for it? A ray of sunshine peeping through the stormy clouds. And what does this sunshine look like? An increase in low-APR loans with longer payback periods. Particularly in December. (No surprise there, the time everyone wants to enjoy the holiday gift-giving spirit.)

Jessica Caldwell, Edmunds’ resident oracle, sheds some light, “Consumers are searching for low interest rates and longer loan terms, so growth in these financing options is critical for drawing interested buyers off the sidelines.”

In December, the average loan term for below 4% APRirs extended up to 56 months from 50 months in June. Amazing, isn’t it? And hey, zero percent APR? Though it’s as rare as a unicorn, they were spotted more frequently towards the end of 2023. They doubled from the third to the fourth quarter – hopping from 1.1% to 2.3% of all new vehicle loans. Exciting times!

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Should You Empty Your Piggy Bank Yet?

The elephant in the room (or, should I say, the Chevy in the room): buying a new car can still bruise your wallet. Edmunds puts it as plain as day – in the last quarter of 2023, the average monthly payment ticked at a record $739 with down payments north of $7,000. To add salt to the wound, the average auto loan rate was ticking at about 7.4%, nearly a full point higher than the previous year.

But hold on! Despite these tough-as-nails challenges, with more cars in the inventory and attractive loan options, things are looking bright for car buyers in 2024. Or as Cox Automotive so succinctly puts it, “2024 will be the best year for car buyers since the pandemic began.”

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