The price of the average used car for sale in America rose by slightly more than half a percent last month. The increase was small but notable because it comes after several months of decreases.
The average used car on sales lots carried a list price of $26,213 in March – up $145 from February’s price — according to data from Kelley Blue Book parent Cox Automotive.
New car prices have been falling for most of 2023. The average new car sold for less than its advertised price in March – the first time in almost two years most buyers have paid less than sticker.
But used car prices are going the other way.
Prices Are Up Because Supply Is Down
“The supply of used vehicles at dealerships is at its lowest point in our data, which goes back to 2019,” said Cox Automotive Senior Economist Charlie Chesbrough. “Finding the right product at the right price is more challenging for buyers today.”
Car dealers have an increasing supply of new cars but a shrinking supply of used cars. They finished March with about a 40-day supply of used cars to sell, down from 44 in February.
Conditions Still Better Than 2 Years Ago
Honda, Toyota, Mazda, Dodge, Nissan, Mitsubishi, Subaru, Hyundai, Chrysler, Chevrolet, Kia, GMC, and Volkswagen dealers all reported an average supply of used cars below 40.
Conditions are still better for used car shoppers than they were at the height of the COVID-19 pandemic. “Compared to Spring 2021, used-vehicle prices at retail have been relatively stable and trending downward,” said Chesbrough. “However, with tight inventory, still-high used-auto loan rates, and improving new-vehicle inventory, the used-vehicle market might be cooling off in the coming months.”
Cheapest Used Cars Hardest to Find
As with new cars, the lower the price, the tighter the inventory. Days’ supply for vehicles under $10,000 was 29. Days’ supply for vehicles priced between $10,000 and $15,000 was 34, between $15,000 and $20,000 was 37, and $20,000 to $35,000 around 41. Those above $35,000 had the highest days’ supply at 50.
