Americans bought fewer used cars in August, but that didn’t drive prices down. The average listing price for a used car rose to $25,829 – another record in a year of nonstop records.
Used car advertised prices have risen 24 percent in one year and 34 percent since August of 2019, before the COVID-19 pandemic rocked markets.
New Car Prices Pushing Used Car Prices Up
“The lack of supply in the new market is also affecting the used market,” said Cox Automotive Senior Economist Charlie Chesbrough. A worldwide shortage of microchips has limited production of many cars. That limited supply has raised new car prices, which pushes buyers into the used car market, or out of the market entirely. Our research shows that many buyers are now opting to try to wait out the high prices.
“Used sales have slowed in recent weeks due in large part to the lack of supply in the new market. Prospective buyers unable to purchase a new vehicle and not trading in their existing vehicle limits the availability of used products at dealers,” Chesbrough added. “This situation is likely to persist until the new-vehicle supply crisis passes.”
Least Expensive Cars in Short Supply
The total supply of used cars available for purchase slipped in August after climbing a bit in July. Dealers currently hold about a 40-day supply of cars to sell – a lower number than they would have in a normal year. But they have fewer prospective buyers coming in the door.
Helping to push the average price higher — the older, higher-mileage cars that dealers sell for less than $10,000 are in the shortest supply, at just 30 days.
Is Now a Good Time to Buy, Sell or Trade a Used Car?
