May New-Car Sales Boost Used-Car Inventory, Dropping Used-Car Prices 7% to $28,861, According to Cars Commerce May Industry Insights Report
On Average, Used Cars Cost About
"The rise in new-car sales, especially during seasonal promotions like
Key May Market Highlights
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Used-car inventory sees signs of improvement with less mileage and lower prices. Inventory increased by 4% month over month thanks to trade-ins from strong new-car sales. As a result, the average price of used cars has dropped 7% year over year to
$28,861 , and the cost per odometer mile has gone down YoY. Though prices are still elevated compared to pre-pandemic, consumers looking for a good-quality vehicle under$30,000 are seeing improvement; these cars now have lower mileage, making them even more attractive. -
New car market sees rising inventory and elevated but steady prices. New car inventory continues to recover, increasing 4% MoM and almost 40% YoY. This brings the total new-car inventory on the
Cars.com marketplace to 2.32 million vehicles throughout the month, the highest level sinceDecember 2020 . The increase in inventory and therefore shopper selection led to a new-car seasonally adjusted annual rate of 15.9 million in May, the highest in 2024. According to theU.S. Bureau of Economic Analysis , this is a significant figure, only surpassed three times since the chip shortage began in mid-2021. Consumer demand also increased in May, with searches up 7% MoM, driven byMemorial Day sales and increased shopping activity.
However, a rise in inventory isn't translating into lower overall prices. New-car prices remained steady at approximately$49,000 , consistent for the past eight months — but down from a high point of$50,300 inJune 2023 . Supplies of new cars are up to 67 days versus 49 days a year ago (+37%), which provides a good selection of cars for shoppers but something for dealers to monitor to avoid overstocking. -
Increased inventory and falling prices pique EV interest. The electric-vehicle market is seeing consumer interest tick up, with increased searches for both new (+17% YoY) and used (+55% YoY) EVs. Still, average prices of
$63,030 , 28% above the market, limits widespread adoption. New product launches,IRS tax credits for new and used EVs and manufacturer discounts are helping to bridge the price gap. With increased inventory (up 77% for new and 44% for used), prices are dropping — down 4% YoY for new EVs and a significant 19% for used EVs.
Early adopters and enthusiasts are trading their EVs for newer models that often offer more extended range and battery life, driving up the stock in used EVs. Shoppers can now find used EVs less than 3 years old with low mileage (around 37,000 on average), providing a terrific opportunity to switch to an EV.
To download the full report, visit www.CarsCommerce.inc.
*Inventory, searches and list price on
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SOURCE Cars Commerce