Did you think new cars were expensive? The average price of used cars is also absurd

0


The auto market is absolutely nuts right now.

Justin Sullivan / Getty Images

We have written a lot about new car prices and their absurdity in recent months as demand exceeds supply. Basically, manufacturing shortages have left automakers without enough new cars to sell to impatient buyers. So a ton of buyers have turned to the used car market – and it shows. Last Thursday, Cox Automotive released new data that shows the average used car now costs, are you ready for it, $ 25,101 in June 2021.

Here’s my first thought: it’s more than a brand new Honda Civic. I have to say this to help put the number into perspective, because a $ 25,000 car doesn’t come cheap. We’re not talking about super low mileage machines either. Data has shown that the average mileage of these cars is 68,613 miles, or about five to six years of driving. So, we are most likely looking at the 2014-2015 models that buyers want to own amid car shortages.

The new record is up from a high of $ 24,414 in May of this year, and if you dig into the percentages, the figure of $ 25,101 is 26% higher than the average used car price at the same time last year. And that’s 29% higher than the 2019 average price, which is a great pre-COVID benchmark. The numbers really show the supply and demand at work, with used cars becoming a very attractive option for those who don’t want to wait for the new car they want.

Although still very expensive, the average price of new cars is just over $ 40,000. Seen in this light, used cars are much better value for money, but if you don’t need a car right now, you might be better off waiting. June data also showed a downward trend in wholesale auction prices, which will result in cheaper prices for used cars at dealerships in the coming weeks.


Leave A Reply

Your email address will not be published.