WASHINGTON, D.C. – An interesting development has occurred in the automotive field, with the prices of new cars continuing to climb – and, in contrast, the used market becoming more and more affordable – with the average price gap between new and used vehicles in the third quarter of 2024 exceeded $20,000 for the first time ever.
The number of brand-new cars available on the market has been increasing since hitting a low point due to supply chain issues during the COVID-19 pandemic. And while the inventory of new vehicles has continued to grow – resulting in an overall slowdown in sales – prices have nonetheless increased, and that phenomenon is having a trickle-down effect upon prices in the used vehicle market.
The average price of a used vehicle in the United States is currently $27,177; this represents a 6.2 percent decrease year-over-year when compared to the average in Q3 2023, when that price was $28,960. In addition, the number of days that a used vehicle sits on the lot before it is sold in Q3 2024 was 36 days, which represents a mere one-day increase year-over-year.
Experts note that falling prices of used vehicles is a positive sign for the overall health of the industry; however, things are still significantly more expensive than they were prior to the pandemic, as in Q3 2019, the average price of a used car was just $20,683, which is a whopping 31.4 percent lower than today’s current average.
The big question for those hoping to buy a vehicle these days, either new or used, is that the pricing gap between the two markets exceeded $20,000 in Q3, the widest margin ever recorded in the industry’s history. The average price for a new vehicle transaction during that period of time was $47,542, as opposed to the aforementioned used average of $27,177, a difference of $20,365.
Therefore, depending on your budget, it’s best to consider the pros and cons of buying new vs. used, and which option makes the most sense for your wallet.
Christopher Boyle is an investigative journalist, videographer, reporter and writer for SEARCHEN NETWORKS® as well as other independent news and media organizations in the United States. Christopher works on a wide variety of topics and fields, has been featured in print and online in a variety of publications, from local to national, and helps keep a keen-eye on what’s happening in the automotive world for Auto Buyers Market.