This year, the used car market has shown rapid price increases for months. For the first time ever, average used car listings have surpassed $25,000.
According to Cox Automotive’s latest data, U.S. used car prices reached $25,101 on average as of the end of June 2021. A year ago, this figure was $20,000 and $24,414 this May. Compared to June 2020 and June 2019, the prices rose by 26 and 29 percent, respectively.
We’ve already reported about the sales boom on the secondary car market caused by a shortage of offerings on the primary market compared to demand. Dealers had to resort to extreme measures to secure their inventories. Even the older models with more than 100K mileage are in high demand.
Experts note that the used-vehicle market has begun to show first signs of sales slowing, although new-vehicle inventory is still dropping.
It seems the wholesale prices have started retreating from record highs. Nevertheless, it is not fully clear now whether the peak of prices for used cars has been already reached.