- The price of the average used car rose $454 during the month of September
- Used car prices have not risen as far as new car prices this year
The average used car was listed for $25,825 at the end of September — up $454 from the month before. Prices sit 2% higher than a year ago.
That’s a relative bargain, as the average new car price topped $50,000 for the first time last month. New car prices now sit 3.6% higher than a year ago.
Used car prices have seen lower inflation because some of the factors pushing new car prices higher skip over the used market. New car prices were inflated by the end of the federal government’s $7,500 electric vehicle (EV) tax credit. EVs tend to be more expensive than gas-powered cars. Many Americans rushed to buy an EV last month while the discount was still available.
Supplies Improving
- Dealers ended the month with 10% more cars than a year ago
- The least expensive used cars are still hard to find
Used car prices are also staying lower because of simple supply and demand. Dealers ended September with about 2.26 million for sale, the highest figure yet this year.
The used car supply has remained low in the wake of the COVID-19 pandemic. Automakers built about 8.1 million fewer cars during the lockdown than they otherwise would have. Those cars will never reach the used market, depressing supply for years to come.
But inventories have begun to recover. Dealers finished September with 10% more cars on the lot than they had a year ago.
Price-conscious buyers have limited options for affordable used vehicles. Availability for used cars priced below $15,000 remains low, with only 34 days’ supply, which is 14 days below the overall industry average.
The top five sellers of the month were listed at an average price of $23,919, more than 7% below the average listing price for all used vehicles sold. Once again, Ford, Chevrolet, Toyota, Honda, and Nissan were the top-selling brands, accounting for 50% of all used vehicles sold.
