The average price of a used vehicle jumped to its highest level in three years in May as reduced inventory levels pushed the amount paid toward $27,000.
According to Cox Automotive, the average price rose 6 percent on a year-over-year basis to $26,918, which is the highest since the middle of 2023. There are just over 2.1 million vehicles sitting on dealer lots across the United States, which equates to about a 45-day supply.
“Volume is down 0.6 percent compared to a year ago but increased 4 percent from April. Despite the monthly gain, used-vehicle inventory remains tight by recent historical standards,” Scott Vanner, Cox Automotive manager of Economic and Industry Insights, wrote.
Rising prices likely crimped demand in May, but there was an off-set as banks and other lenders eased up on restrictions, which improved credit availability for buyers last month. Ford, Chevrolet, Toyota, Honda, and Nissan were the top-selling brands again in May, accounting for nearly 50% of all used vehicles sold, Cox noted.
Another buying trend remains strong: consumers want inexpensive used cars and they are selling quickly. That means finding a used offering for less than $20,000 is going to take longer than before because when they come available, they disappear faster than ever.
Vehicles priced under $15,000 carried 33 days’ supply in May, 12 days below the overall market average of 45.
“Both inventory and sales of vehicle priced under $20,00 declined in April, while sales of higher-priced units grew. Near-new SUVs posting the largest gains,” Vanner wrote. “The top five sellers of the month had an average price of $25,043, approximately 7% below the average listing price for all used vehicles sold.”
[Images: Chevrolet and Honda]
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via Autobuzz Today
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