- The average used car price climbed to $27,027 in June, which is a 6% increase from last year.
- The average used car price last hit $27,000 three years ago.
The average used car price exceeded $27,000 for the first time in three years, according to data provided by car dealers to Cox Automotive, parent company of Kelley Blue Book.
The average used-vehicle listing price was $27,027 in June, up 6% from a year ago. Used car prices increased each month during the second quarter. Higher used car prices mirrored higher average new car prices of $49,758 for June.
“Used vehicles continue to offer a compelling value proposition compared with new models,” Scott Vanner, Cox Automotive’s manager of Economic and Industry Insights, said in the monthly report.
The report also listed improving credit availability as a source of high used-car demand, with shoppers’ access to credit reaching its highest level since December 2015. Long loan terms are a big part of the big picture. The share of 6-year loan terms reached a record 31.1% of all car loan durations.
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America’s car dealers ended June with a supply of vehicles on dealer lots that has crept higher each month since a near-record low of 37 days at the end of March. Used cars sat on lots for an average of 47 days in June. Normally, an increase in supply would translate to lower prices but that hasn’t played out. Part of the reason is because there are more younger, newer cars in the used sales mix.
Price-conscious buyers continue to face limited options for affordable used vehicles. Vehicles priced below $15,000 only had a supply of 33 days, indicating high demand and limited availability.
Once again, Ford, Chevrolet, Toyota, Honda, and Nissan accounted for nearly 50% of all used vehicles sold.
