Cars Commerce April Industry Insights Report Reveals New-Car Inventory Up 35% YoY but Remains a Million Units Below 2019 Levels With Prices Up 30% in the Same Time Frame
Used-Car Market Moderates; Demand Drops 8%, Prices Decline 6%
"The last five years have been highly volatile for auto, yet a pattern of stabilization is emerging," said
Key April Market Highlights
As of
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Gradual improvement in new inventory and consumer demand: The average new-car price remains stable at approximately
$49,111 , down slightly by 1.5% year over year — although prices are higher than before the semiconductor shortage, there's a notable effort by automakers to introduce more vehicles priced under$30,000 , which have seen the most market share growth so far in 2024. As new-car inventory levels increase by 35% compared to 2023, consumers are experiencing fewer pressures to compromise on their vehicle choices. This reflects a market adapting to improved supply conditions, although total inventory still trails pre-pandemic levels by over a million units. -
Aging inventory with elevated costs: In
April 2024 , used cars averaged 59,693 miles, marking an increase of 4,360 miles compared toApril 2019 . Despite a slight year-over-year 6% decrease (-$1,958 ) in prices, the average cost remained elevated at$28,910 compared toApril 2019 , when the average price was$21,639 . This shift reflects in the cost per 1,000 miles, which rose from$391 ($0.39 per mile) inApril 2019 to$484 ($0.48 per mile) inApril 2024 , reflecting a gradual easing but still higher costs than pre-pandemic levels. Consumers are paying an additional$93 per 1,000 miles on average compared to 2019 and$119 more at the peak of market prices. Used inventory slightly declined by 1.6% year over year, coupled with a decrease in consumer demand, suggesting ongoing challenges but also a gradual stabilization. As the market adapts, both buyers and sellers are adjusting to a landscape shaped by the trickle-down effect of high new-car prices. -
Trade-in and wholesale market trends: Pre-pandemic, luxury used trade-ins commanded 120% more value than mainstream brands, but today, the difference has narrowed to 78% as mainstream prices have surged. After a brief spring recovery, wholesale values dipped again in April (-1.2% MoM, -16% YoY), with both mainstream and luxury models experiencing similar declines, indicating ongoing depreciation adjustments. Additionally, increased purchases by rental companies drove up mainstream used-vehicle prices, contributing to the narrowing price gap between luxury and mainstream segments.
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EV market response to overcapacity: The EV market is seeing a significant increase in inventory that has led to some oversupply, prompting a 5% reduction in new EV prices year over year to an average of
$62,927 . This price adjustment aims to stimulate demand in a segment that is still growing but at a moderate pace due to economic uncertainties. And it's working: Demand for new EVs is up 10% YoY. The used EV market has responded with a substantial 20% drop in prices, enhancing its appeal amid cost-conscious consumer behavior.
Additional noteworthy April insights:
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Toyota Tacoma punches above its weight In top searches amid full-size trucks: In a market heavily skewed toward full-size trucks, it secures a spot in the top 10 vehicle searches as the only mid-size truck in a highly competitive segment. This achievement is particularly striking given the introduction of new models in the mid-size truck category, all sporting the latest designs and features. Yet the Tacoma not only holds its ground, it's also set to enhance its appeal with the upcoming introduction of a hybrid engine — a first in its class — promising increased power and improved fuel economy.
- Seasonal trends in top-searched used autos: In April, the top 10 most searched used cars saw a seasonal price increase. The average price for all top 10 models rose month over month, with the Porsche 911 experiencing the largest increase and the Chevrolet Corvette the smallest.
New-Vehicle Supply, Demand and Pricing*
|
||
Supply |
Demand |
Price |
34.6 % |
-22 % |
-1.5 % |
Used-Vehicle Supply, Demand and Pricing*
|
||
Supply |
Demand |
Price |
-1.6 % |
-7.8 % |
-6.3 % |
New-EV Supply, Demand and Pricing*
|
||
Supply |
Demand |
Price |
99.7 % |
10.5 % |
-5.1 % |
Used-EV Supply, Demand and Pricing*
|
||
Supply |
Demand |
Price |
42.2 % |
44.6 % |
-20.2 % |
*Inventory, searches and list price on
ABOUT CARS COMMERCE
Cars Commerce is an audience-driven technology company empowering the automotive industry. The Company simplifies everything about car buying and selling with powerful products, solutions and AI-driven technologies that span pretail, retail and post-sale activities – enabling more efficient and profitable retail operations. The Cars Commerce platform is organized around four industry-leading brands: the flagship automotive marketplace and dealer reputation site
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SOURCE Cars Commerce