The used car market has been an up-and-down mess since at least 2020, with reduced new car inventory pushing more buyers into pre-owned purchases, which reduced the revolving supply of trade-ins. This perfect storm of pandemic-induced chip-shortage used car inflation appears to finally be subsiding. According to a new report from Edmunds Q2 of 2024 saw used car prices dip nearly seven percent across the board, while used EV prices tanked a full 20 percent. Consumers have more used car options and are typically paying less for them than they were in the same period of 2023.
“The used car market prices are trending downward in a very predictable manner,” Ivan Drury, director of insights at Edmunds.com, said in a discussion with the Detroit Free Press. “These vehicles aren’t sitting on the lot for dramatic periods of time. Every time the vehicles go down in price, there are consumers there ready to buy.”
The report says that the average used vehicle price paid in Q2 2024 was just $27,319, down from $29,382 the previous year. EV prices fell significantly in the same periods from $42,482 to just $33,787. A lot of this EV price crunch can be explained as a result of downward pressure on the market from Hertz flooding the market with 30,000 Teslas at bargain basement prices, as well as increased supply from non-Tesla automakers, and consumer demand moving toward hybrids. Speaking of hybrids, their prices fell also, but by just 5.1 percent from $32,038 on average to $30,416.
Compare all of these numbers to new car average transaction prices and you’ll see that many Americans are saving thousands by buying used. New car prices have barely changed at all, with Q2 2023 prices at $47,866 and Q2 2024 clocking in at $47,424.
If you were looking to buy a used car, especially a used electric vehicle, now might be your time. Prices are down, inventory (and thus choice) is up, and used car dealers are looking to get some transactions processed.