September 2024 Used Market Update
September 2024 Used Market Update
The peak in used retail prices occurred around late 2021 and early 2022, with prices reaching $31,279. Since then, there has been a gradual decline in pricing, with the most recent data from August 2024 showing average prices essentially flat compared to July 2024 at $28,590.
While prices remain elevated compared to pre-pandemic levels, the gradual decline shows that the market is moving towards its new normal. Dealerships and consumers are adjusting their behaviors due to better new vehicle availability and higher interest rates making financing more expensive.
Used Retail Sector Update
The premium market continues to show more pronounced declines in used vehicle prices compared to the mass market, with a 0.3% month-over-month decrease for premium vehicles, whereas the mass market held steady with no changes in pricing for the month.
Premium vehicle prices are seeing slightly larger declines as economic uncertainty, inflation, and higher interest rates push consumers to either downgrade to more affordable vehicles or delay purchases altogether.
Mass market prices remain more stable, due largely to stronger demand for affordable fuel-efficient vehicles as consumers tighten their budgets in response to inflationary pressures. Buyers looking for practicality and affordability are more likely to stick to mass-market models.
