Average Used Car Listing Price Hits $25,500

According to research conducted by Cox Automotive, the average listing price for used vehicles hit $25,500 in July, setting a new record for used cars. The new record comes immediately after used car prices surpassed $25,000 for the first time ever on record. Just as some context, the average listing price for a used vehicle last summer was $20,000. Back then, that was the highest it's ever been.

The outlet’s data reveals that the average listing price for a used vehicle was 28% higher at the end of July compared to the same time last year. The price is 32% higher than the same period from 2019. With rising used car prices, it shouldn’t be a surprise to hear that the number of unsold used vehicles in the U.S. increased at the end of July compared to June. At the end of the month, there were 2.44 million unsold used vehicles compared to 2.40 million in June.

Comparing the average amount for a used vehicle between independent dealers and franchised dealer reveals that prices at franchised dealerships are much higher. The average listing price for a used vehicle at a franchised dealership was $27,402 in July, an increase of roughly $100 from June. At independent dealerships, the average listing price was $22,629, an increase of $468 from June.

With more unsold used vehicles on dealer lots, consumers should have an easier time than before when it comes to finding a used car. Unfortunately, shoppers are looking at spending more money on a used vehicle than they want to, as affordable used vehicles are in short supply. Cox Automotive claims that used vehicles that cost less than $10,000 have the lowest supply of 30 days. The days' supply goes up to 38 days for used cars that are priced between $10,000 and $20,000. Used vehicles that cost between $25,000 and $35,000 have a supply of 43 days. Above the $35,000 mark, the supply stood at 49 days.

Used car prices hit new records once consumers realized that finding a new vehicle at a dealership at a reasonable price was almost impossible. Because of the COVID-19 pandemic and the chip shortage, automakers have been struggling to get new vehicles to dealer lots. And when the vehicles get there, consumers are willing to pay over MSRP to purchase them. So, shoppers went to the used car market, which caused prices to rise.

There’s no real answer to when used car prices will drop. Some seem to think that 2023 will be the magical year when used car prices come down to normal. One thing is for certain, used car prices continue to be on the rise – if anything, prices are expected to continue to increase in the near future as demand for new vehicles remains insanely high.

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