May used vehicle prices in the United States were on average $20,000 less than new vehicle prices during the same period — the largest price gap since 2018, according to a Cars Commerce May 2024 Industry Insights Report.
In a news release, the company said used vehicle inventory was up 4% month-over-month, due largely to trade-ins from strong new vehicle sales. This caused the average price of used vehicles to decline 7% year-over-year, translating to an average of $28,861. The cost per odometer mile (about 1.6 kilometres) declined YoY. However, good quality vehicles under $30,000 can now be found with lower mileage.
As for new vehicles, Cars Commerce said inventory continues to recover. It has increased 4% MoM and nearly 40% YoY, bringing the total new car inventory on the company’s website (its Cars.com marketplace) to 2.32 million vehicles throughout the month. That, they said, is the highest level since December 2020.
“More new car inventory means more new car sales, which means more trade-ins, increasing used car inventory and bringing prices down — and that’s just what we’re seeing this month,” said Rebecca Lindland, Senior Director of Industry Data and Insights at Cars Commerce, in a statement.
She added that, on average, used vehicles were selling slightly slower in May than the same time last year. “Prices are still elevated for new and used vehicles, but today, shoppers have more inventory, more choices, and more time to find the vehicle that fits their budget and lifestyle,” she said.
The increase in new vehicle inventory resulted in a new vehicle seasonally adjusted annual rate of 15.9 million in May, which Cars Commerce said was the highest in 2024.
