Used car prices come down as Americans hang on to cars longer

Nov 18

Craig Nigrelli Reporter

By Craig Nigrelli (Reporter ), Brock Koller (Senior Producer), Jack Henry (Editor)

The price of used or pre-owned cars dropped by 6.2% in the first three quarters of 2024. According to Edmunds.com, the average price is now $27,000.

This marks a significant change from 2022 when inflation was soaring and the average price of a used car was greater than $30,000. Experts say there’s now an abundant supply of used cars on the market, helping to push prices down.

Download the SAN app today to stay up-to-date with Unbiased. Straight Facts™.

Point phone camera here

Americans are also driving their cars longer. That means more cars on the road are older and people aren’t shopping for cars as frequently. Interest rates on car loans are still relatively high, giving potential buyers reason to reconsider purchasing a car.

Market watchers also say it’s not beneficial to trade in for a newer model since used cars depreciate in value.

As for new cars, the average prices of a new car is around $47,000. That price has held steady for the past few years.

Many automakers have cut production of their lower-priced economy cars and are instead focused on selling high-end models to consumers.

Tags: cars, Inflation, Interest rates, Used cars

[CRAIG]

THE PRICE OF USED OR PRE-OWNED CARS DROPPED BY 6.2% IN THE FIRST THREE QUARTERS OF 2024 TO AN AVERAGE OF $27,000, THAT’S ACCORDING TO EDMUNDS.COM

THIS MARKS A SIGNIFICANT CHANGE FROM 2022, WHEN INFLATION WAS SOARING AND THE AVERAGE PRICE OF A USED CAR WAS GREATER THAN $30,000.

EXPERTS SAY THERE IS NOW AN ABUNDANT SUPPLY OF USED CARS ON THE MARKET, HELPING TO PUSH PRICES DOWN.

IN ADDITION, AMERICANS ARE DRIVING THEIR CARS LONGER. IN OTHER WORDS, MORE CARS ON THE ROAD ARE OLDER AND PEOPLE ARE NOT SHOPPING FOR A

CAR, AS FREQUENTLY.

ALSO, INTEREST RATES ON CAR LOANS ARE STILL RELATIVELY HIGH GIVING BUYERS REASON TO PAUSE AND CONSIDER THEIR BUDGET

EDMUNDS.COM ALSO FOUND THAT WITH USED CARS DEPRECIATING IN VALUE, ITS NOT ALL THAT BENEFICIAL TO HAVE A TRADE-IN WHEN GOING TO THE DEALERSHIP, IN HOPES OF TRADING ** UP** FOR A NEWER MODEL.

AS FOR NEW CARS, THE AVERAGE PRICE OF A NEW CAR IS AROUND $47,000, WHICH HAS PRETTY MUCH HELD STEADY FOR THE PAST FEW YEARS. MANY AUTOMAKERS HAVE CUT PRODUCTION OF THEIR LOWER-PRICED ECONOMY CARS AND ARE INSTEAD FOCUSED ON SELLING THEIR HIGH-END MODELS. FOR MORE STRAIGHT ARROW NEWS, DOWNLOAD THE STRAIGHT ARROW NEWS APP.