To end 2024, the average used car price was down nearly 3% from 2023. Many buyers are turning to used and CPO cars to get lower prices. CPO sales were up 2.7% in November. However, the strong sales have had another result: low dealer supplies. The average dealership started December with 46 days’ worth of used vehicles.
Sending Mixed Signals
The used car market is a mixed bag right now. Prices have gone down slightly, but inventory has tightened. If you see a dealership advertising “We Buy Cars,” it’s generally because the supply of used cars has gone down by about 6%. The available supply of used cars is roughly 2.18 million units on dealer lots nationwide.
Through most of 2024, the average price for a used vehicle has stayed fairly stable at around $25,000. The price fluctuation during the year has only been about $500 on average. Meanwhile, roughly 1,417,573 used vehicles were sold in the United States in November, which is a significant increase from the 1,259,277 vehicles sold in November 2023 and a jump from October 2024.
Inventory Drop for Lower-Priced Used Cars
Dealer supplies keep going down. The average supply of used cars was 46 days in December, down from 47 days in November, and quite a lot lower than the 57.8 days of supply at the same time in 2023. Supplies are particularly low in the used car segment with the lowest prices. For cars priced below $15,000, there’s only an average of 34 days of supply.
The top-selling brands in November were Nissan, Ford, Chevrolet, Toyota, and Honda. These brands alone accounted for nearly half of all used vehicles sold during the month. According to many dealerships, sales were stronger in the late fall and early winter than they usually are. Normally, consumers are less likely to visit dealerships during seasonally bad weather, but that doesn’t appear to be the case this time.
Certified Pre-Owned (CPO) Sales Gaining Traction
CPO vehicles are also becoming more popular. About 208,708 CPO vehicles were sold in November, which is a jump from 205,863 in the same month from 2023, and an even bigger jump from the 198,313 sold in November 2022. Compared to October, sales rose by nearly 3%. This climb in sales seems to indicate that many buyers are attracted to a manufacturer-backed warranty even if it means they have to pay a bit more.
The compiled sales data seems to show a used-car market that is declining in price but is still challenging for buyers to navigate, thanks to the inventory drops across the country. The market for affordable vehicles is particularly tough as not much remains for late-model vehicles below $15,000.
If you’re looking for a used car, the good news is that prices are lower now than they were a year ago. However, the bad news is that you may have to do some searching to find what you want, thanks to low dealer inventory in some places.
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