The Used car market is an up and down since at least 2020, with reduced new car inventory push more buyers buy used carswhich reduced the supply of trade-ins. This perfect storm of pandemic-related chip shortages and used car inflation finally seems to be abating. According to a new report from Edmunds In the second quarter of 2024, used car prices fell across the board by nearly seven percent, while used electric vehicle prices plummeted by a whopping 20 percent. Consumers have more options for used cars and typically pay less for them than they did in the same period in 2023.
“Prices in the used car market are trending downward in a very predictable way,” says Ivan Drury, Director of Insights at Edmunds.comsaid in a discussion with the Detroit Free Press“These vehicles do not sit on the parking lot for dramatically long periods of time. Whenever the prices for the vehicles drop, there are consumers who want to buy them.”
The report states that the average price of used cars in the second quarter of 2024 was only $27,319, compared to $29,382 a year earlier. Prices for electric vehicles fell significantly from $42,482 to just $33,787 during the same period. Much of this drop in electric vehicle prices can be explained as a result of downward pressure in the market. von Hertz floods the market with 30,000 Teslas at bargain prices, as well as increased supply from non-Tesla automakers and rising consumer demand towards hybridsSpeaking of hybrids, their prices also fell, but only by 5.1 percent, from an average of $32,038 to $30,416.
Comparing all of these numbers to average new car transaction prices, we find that many Americans are saving thousands by purchasing a used car. New car prices have barely changed, at $47,866 in the second quarter of 2023 and $47,424 in the second quarter of 2024.
If you’re looking to buy a used car, especially a used electric vehicle, now might be the time for you. Prices are low, inventory (and therefore selection) has increased, and used car dealers are looking to get some transactions done.
