August Used Market

Used Retail Prices Industry

•Used retail vehicle prices have been gradually declining throughout 2024. As of July, the average used vehicle price was $28,469, marking a significant decrease from the peak prices seen in 2022 when the average price was over $31,000.

•The decline in retail prices is partly due to improved new vehicle inventories, and new vehicle incentives which have reduced the pressure on used vehicle prices.

•The market is expected to continue stabilizing with modest declines in prices through the rest of 2024.

Used Retail Prices Sector

•The premium market is experiencing sharper declines in used vehicle prices compared to the mass market, which can be attributed to higher sensitivity in the luxury segment to economic conditions such as rising interest rates and inflation.

•As new vehicle inventories recover, consumers have more choices, putting downward pressure on used vehicle prices across both segments. However, the impact is more pronounced in the premium segment where buyers might opt for new models instead of slightly used ones.

•These trends indicate that while both sectors are experiencing price declines, the premium sector is being hit harder, likely due to a combination of reduced consumer purchasing power and a more rapid recovery in new vehicle availability.