According to the updated consumer price index, used car prices dropped to an over-three-year low in July 2024, as demand dropped for used vehicles.
According to Cox Automotive, the average listing price for a used vehicle in July was $25,251, which is more than 10% below 2022 prices.
The group notes, however, that finding affordable cars remains a challenge as there is only a 39 days’ supply of cars under $15,000. Overall, there is a 53 days' supply of used vehicles.
New car prices are also falling, although not at the same clip.
The average new vehicle price in July was $48,401, down from the peak in December 2022 of $49,929. In December 2022, it took the average American 40 weeks of income to buy a new car, according to Cox Automotive. As of July, it takes 37 weeks of income.
There was a slight decline in the number of cars sold in July 2024 compared to a year earlier.
“New-vehicle affordability saw an improvement in July, even as auto credit availability declined,” said Cox Automotive chief economist Jonathan Smoke. “Consequently, while new vehicles might be somewhat more affordable, they are harder to obtain due to the continued weak performance of auto loans.”
