Site icon Anew Day For Immigration

Cars Commerce report: All quiet on the used-car front

Cars Commerce report: All quiet on the used-car front

The latest numbers from Cars Commerce show a new-car market in flux, with prices falling as excess inventory builds up.

In the used-car world, on the other hand, all is calm and steady.

Car Commerce’s September Industry Insights Report paints a serene picture of the used-car market, with prices having stabilized over the past six months in what the report called “a more balanced market” that is adjusting to “evolving consumer demand.”

While Cars Commerce industry and marketplace analytics principal David Greene noted the new-car market is “undergoing an adjustment,” the relative tranquility of the used side of the industry — which followed a price decrease as the market adjusted to the increased availability of new vehicles — has made used cars an attractive option for car buyers, helping them navigate the market amid still-high interest rates and fluctuating new-car prices.

“Cars.com’s New Car Price Index fell almost 5 points year-over-year, showing some of the impacts of available incentives and discounting for select models,” he said in the report. “Meanwhile, the used-car market continues to hold steady since early 2024, but average list prices are down 5% year-over-year, dropping to $28,882, ultimately offering more affordable options for price-conscious consumers.”

That said, there is a cost associated with those options, though not a monetary one. The age of those used cars is steadily increasing, which means consumers are now getting an older car for the money than they had before.

The report, based on data from Cars Commerce’s platforms, including Cars.com, Dealer Inspire and AccuTrade, showed the average used-vehicle age in September was 5.2 years, up 4% from the 2023 average of 5.0, and the average odometer reading hit 60,716 miles, up 2% YOY.

Both the year-over-year price decline and the rising age of used cars shows up in the inventory levels. The Cars Commerce report showed supply is down from 2023 for all price ranges from $20,000 up, vehicles that average less than 4 years old. Vehicles listed for $30,000 or more on Cars.com — averaging less than 3 years old — are down 15% or more.

One segment of the used market that is on the rise is electric vehicles.

According to the report, used EV demand, defined as searches on the Cars Commerce platforms, has shot up 32% since September 2023 compared to a 2% decline in all used-car searches, thanks in large part to a 9% decrease in average list prices — almost twice the rate for the overall used-car market.

With an average price of $37,145, used EVs are proving to be a much more affordable alternative for shoppers seeking that powertrain than new EVs, which average $62,290, according to Cars Commerce’s data.

The full report is available for download here.

link

Exit mobile version