More than 10% less expensive than last year, used cars are mostly due to more new cars on the market and deals on those cars to get them off of lots faster.
In July, consumer prices went up a little, mostly because of higher living costs. However, prices for used cars and trucks went down, with 10.9% year-over-year drops.
The drop in prices for used cars is closely linked to the market for new cars. There are more new cars on the market, and deals are being used to try to sell them faster.
Edmunds.com said Wednesday that prices for used electric vehicles have dropped even more—nearly 21% since the second quarter of 2023 and almost 40% since the second quarter of 2022.
Late last month, Carvana Co. CVNA 6.90%, an online store that sells used cars, shocked everyone by reporting a profit in its second quarter. This was mostly due to an increase in retail sales.
Analysts at Edmunds.com said that the average age of a used EV is 2.7 years, while the average age of a used car in the whole business is 4.5 years.
Edmunds.com analysts said, “Electric vehicles might be seen as the way of the future when it comes to transportation, but recent changes in the U.S. market have also made them very easy to find used.”
Returning to the topic of new cars, Edmunds.com reports that the average price for these cars rose to $1,687 in the second quarter, up from $611 in the same quarter last year.
Also, the time it took to sell a new car went up from 37 days in the second quarter of 2023 to 53 days in the June quarter.
The experts at Edmunds.com said that discounts and special offers on older vehicles have been caused by a glut of new cars on the market over the past year. “The values of newer used cars have gone down in line with these falling new car prices.”
