It has been a long road, but the average price for used trucks and cars is finally going down. In February, the average price was $25,151 for a used vehicle, which was about $175 lower than the previous month. It looks like prices are continuing to slowly and steadily decline as time goes on. Industry experts expect them to continue falling in the future.
Falling Prices Trend Continues
Used car prices in 2024 are roughly 3% lower than they were a year ago. This trend should continue as dealers pay lower prices at auction for used trucks and cars. Despite the trend of lower prices, the supply of used trucks and cars continues to remain rather thin. The average car dealer usually keeps about 60 days worth of inventory in stock. That number dropped well under than during the pandemic.
Automakers also built around 8 million fewer cars during that time than they normally would have. Those 8 million unbuilt cars continue to impact the car supply and will continue to impact it for some years in the future. In February, the average dealer had only 44 days worth of inventory on their lots. Nevertheless, that figure is up by 9% from a year ago.
Used Car Sale Season
One thing to keep an eye on is this spring’s sale season. It’s often called the used car sale season as many Americans use their tax refunds to help fund a car purchase. Used car sales are usually brisk during the spring and inventories often drop below average numbers.
However, this season is a bit different as Americans are trending toward used cars that are only a few years old and more expensive than usual. Last month, over 300,000 used cars were sold for a figure of over $35,000. Less expensive vehicles between $15,000 and $20,000 sold almost as much at 280,000.
Unfortunately for the most budget-minded shoppers, vehicles priced under $15,000 continue to be a rarity in this market. If you find a vehicle in that price range, there’s a good chance it’s nearly two decades old and has a lot of miles.
What’s Next?
Car shoppers looking for used trucks and cars in this market should expect to pay more than in times past. The repercussions of unbuilt cars and supply chain woes are likely to be felt for a long time. There are still various obstacles to buying a car, whether new or used. Loans are harder to get and prices are still higher than before. Fewer cars came off leases after 2020, which was a big source of lightly-used cars in the past as many owners chose to hold onto their cars.
On the new car side, it seems like the budget-based model has fallen off the table for many automakers. If you’re looking for a new car with a low starting price, there are fewer and fewer models to choose from. Experts continue to advise doing your research and taking your time to find a good deal.
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