The average used car in America was listed for $25,361 in September – up 0.7% from the month before but still 5% lower than a year ago.
The increase, however, doesn’t mean dealers raised prices on each individual car. Instead, Kelley Blue Book parent company Cox Automotive reports, Americans bought newer used cars, on average, with an uptick in sales of vehicles under two years old.
Related: Average New Car Prices Fall Year-Over-Year, Incentives Rise
Retail used-vehicle prices have been consistently lower through the first nine months of 2024 compared to year-ago levels.
Dealers find themselves with a lighter supply of used cars this month. As October opened, the total supply of used cars for sale at dealerships nationwide sat at 2.15 million – down 4% from a year ago. They started September with 2.18 million.
But that might not pose much of a problem. There will likely be fewer shoppers this month, too.
The Federal Reserve cut interest rates last month for the first time in more than four years. But analysts say the cut will take time to show up in the auto loan market. The Fed cut rates by 50 basis points, but lenders have lowered theirs by just 15 so far. Waiting might get you a better loan rate.
Dealers also believe many would-be shoppers are waiting for the results of the presidential election before making any major spending decisions.
The oldest, least expensive used cars are the hardest to find. Dealers have just a 33-day supply of used cars priced under $15,000.
Ford, Chevrolet, Toyota, Honda, and Nissan were the top-selling brands, accounting for 51% of all used vehicles sold.
