Where are used car prices headed? How far have used car prices already fallen this year? Which cars have seen the greatest depreciation? We’re answering these questions and more with the latest used car market update for summer 2024. Want to see local price data and buying advice? Check out CarEdge Insights, now featuring Invoice Prices!
Used Car Market Trends in 2024
As of July 2024, there are 2.21 million used cars for sale in America, a number that has remained steady in recent months. Despite this stable inventory, used cars are sitting on dealership lots for longer. The days to turn, which indicates how long a car stays on the lot before being sold, has risen from 43 days in March to 53 days in July.
The average listing price for a used car is now $25,251, which is down 1.5% since early June and down 7% year-over-year. If we go back to 2022, at the peak of used car prices, we see a 12% decline. Here’s a surprising fact: retail used car prices are now on par with summer 2021 levels. Over the same three years, the cumulative rate of inflation has been 16%. Car prices are defying the inflationary trend seen in other parts of the U.S. economy. So, how much further will used car prices fall in 2024?
CarEdge Co-Founder and industry veteran Ray Shefska shared his thoughts on where used car prices are headed for the remainder of 2024. “The trend should continue downward, with some caveats. There will be a reduction in lease returns the second half of the year and all of next year, due to the market slowdown three years ago during the pandemic. I expect that the downward trend in used car prices will be about half of what we have seen through the first 6 months of the year. The younger 2 to 3 year-old cars with lower mileage will once again command premium pricing.”
Which Used Car Prices Are Falling Fastest?
We’ve compiled the used cars that are seeing the greatest depreciation in 2024, leading to more affordable prices for buyers today.
Vans
Minivan prices have fallen 7% since April, exceeded only by full-size vans, which have fallen 14% in the same period. Following the decline, here are the average selling prices for some of the most popular used vans today:
Average Selling Price: $32,474
Negotiability Score: Below average, 41 days of market supply
Average Selling Price: $39,779
Negotiability Score: Below average, 31 days of market supply
Average Selling Price: $33,197
Negotiability Score: Average, 47 days of market supply
EVs
According to iSeeCars, the average price of a used EV dropped by 29.5% from $40,783 in June 2023 to $28,767 in June 2024. Here are the latest prices for three of the most popular used EVs in America:
Average Selling Price: $28,844
Negotiability Score: Below average, 38 days of market supply
Average Selling Price: $24,096
Negotiability Score: Below average, 34 days of market supply
Average Selling Price: $32,681
Negotiability Score: Below average, 26 days of market supply
Luxury Crossovers
Another used car segment that has seen falling prices in 2024 is the luxury crossovers. Prices for these popular models have fallen by more than 40% in three years.
Average Selling Price: $33,105
Negotiability Score: Average, 48 days of market supply
Average Selling Price: $47,790
Negotiability Score: Above average, 64 days of market supply
Average Selling Price: $34,225
Negotiability Score: Above average, 66 days of market supply
Used Car Price Trends in 2024
The used car market is inching closer to normal following four years of disruption. Prices are falling, inventory levels are high, and cars are staying on lots longer. However, the market is complex, with each used car segment showing different trends. Minivans and full-size vans are seeing the steepest price declines, while used EVs and luxury crossovers also offer some serious opportunities for savings. As lease returns decrease, younger, low-mileage cars will likely become more valuable, slowing the overall price decline later in 2024.
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