Used car prices are rocketing to unprecedented new highs, with the average used vehicle price recently reaching $25,000 for the first time.
According to a a recent report from Cox Automotive, the average used vehicle price listing was set at $25,101 at the end of June, up from $24,414 the month prior. Just last year, the average used vehicle price listing hit $20,000, and has risen 26 percent year-over year, and 29 percent since 2019.
The Cox Automotive prices are based on an analysis of vAuto Available Inventory data. According to the report, the total supply for unsold used vehicles on U.S. dealer lots was at 2.45 million vehicles by the start of July, rising from 2.38 million units by the start of June. The figures represent an increase of 6 percent year-over-year compared to June of 2020, and a decrease of 11 percent compared to the 2019 calendar year.
Average inventory was set at 41 days’ supply, an increase from 38 days’ supply the month prior, continuing upward momentum first established in April. Meanwhile, the average mileage was set at 68,613 miles.
“While new-vehicle inventory continues to drop, the used-vehicle market is showing small signs of improvement, with slower sales allowing inventories to creep upward,” said senior economist at Cox Automotive, Charlie Chesbrough. “With wholesale prices of used vehicles beginning to retreat from record highs, the worst of the supply crunch in the used market may be behind us.”
Earlier this month, an analysis from Edmunds indicated that the average transaction price for used vehicles in Q2 of the 2021 calendar year had risen to $25,410, the highest-ever quarterly used ATP that the company had ever recorded. The Edmunds data also included used vehicle ATPs of $22,977 for Q1 of the 2021 calendar year, and $20,942 for Q2 of the 2020 calendar year. Interested buyers are advised to maximize their vehicle trade-n value in order to take advantage of the market’s current sky-high prices.