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.
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.