Thursday, October 31

Prices of new and used cars reach an unprecedented gap

Arlenys Tabare's Avatar

By Arlenys Tabare

31 Oct 2024, 1:57 PM EDT

A recent analysis published by Edmunds, a car buying guide, indicated that the price of new and used cars reached an unprecedented gap during the third quarter of this year.

In this regard, in the report, Edmunds CIO Ivan Drury highlighted that “used car values ​​are falling at a constant rate, but they are not close to a free fall as there is greater demand from buyers who intended to buy a new carbut they can’t pay for it,” he said.

The specialist indicated that during that time “the supply of used cars was limited due to fewer exchanges in new car sales, Rental agencies are not selling as many nearly new used cars and off-lease cars are not supplying as many vehicles to the market.”, he mentioned.

According to analysis data, for the first time in history, the average price between new and used vehicles exceeded $20,000, Edmunds detailed that The average price for which a new vehicle sold was $47,542 compared to $27,177 for a used vehicle.

Since last year, The price of used vehicles fell 6.2%, generating relief for buyers; However, despite the drop, the value of second-hand vehicles still exceeds the figures for 2019 before the pandemic.

Finally, it was evaluated that used cars remain in dealerships for less time than 57 days, according to Drury “this will generate greater incentives, but Automakers will have to decide if those incentives will be cashspecial financial offers or subsidized rents. “Each approach appeals to a different consumer, but the overall theme is that savings are just around the corner.”

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