Used car prices come down as Americans hang on to cars longer

[CRAIG]

THE PRICE OF USED OR PRE-OWNED CARS DROPPED BY 6.2% IN THE FIRST THREE QUARTERS OF 2024 TO AN AVERAGE OF $27,000, THAT’S ACCORDING TO EDMUNDS.COM

THIS MARKS A SIGNIFICANT CHANGE FROM 2022, WHEN INFLATION WAS SOARING AND THE AVERAGE PRICE OF A USED CAR WAS GREATER THAN $30,000.

EXPERTS SAY THERE IS NOW AN ABUNDANT SUPPLY OF USED CARS ON THE MARKET,  HELPING TO PUSH PRICES DOWN. 

IN ADDITION, AMERICANS ARE DRIVING THEIR CARS LONGER.  IN OTHER WORDS, MORE CARS ON THE ROAD ARE OLDER AND PEOPLE ARE NOT SHOPPING FOR A

CAR,  AS FREQUENTLY.  

ALSO, INTEREST RATES ON CAR LOANS ARE STILL RELATIVELY HIGH GIVING BUYERS REASON TO PAUSE AND CONSIDER THEIR BUDGET

EDMUNDS.COM ALSO FOUND THAT WITH USED CARS DEPRECIATING IN VALUE, ITS NOT ALL THAT BENEFICIAL TO HAVE A TRADE-IN WHEN GOING TO THE DEALERSHIP, IN HOPES OF TRADING ** UP** FOR A NEWER MODEL. 

AS FOR NEW CARS, THE AVERAGE PRICE OF A NEW CAR IS AROUND $47,000, WHICH HAS PRETTY MUCH HELD STEADY FOR THE PAST FEW YEARS.  MANY AUTOMAKERS HAVE CUT PRODUCTION OF THEIR LOWER-PRICED ECONOMY CARS AND ARE INSTEAD FOCUSED ON SELLING THEIR HIGH-END MODELS.  FOR MORE STRAIGHT ARROW NEWS, DOWNLOAD THE STRAIGHT ARROW NEWS APP.