The average used car in America sold for $28,012 in June, down $300 from May.
“The used vehicle market is doing very well,” said Chris Frey, senior director of Industry Insights, Cox Automotive. “Although the used market has been a little softer than usual this year, it is not experiencing stress. In fact, the market is moving towards pre-COVID 2019 conditions.”
Cox Automotive is the parent company of Kelley Blue Book.
Improved used car supply
Prices remain 12% higher than a year ago. But as recently as April, they were almost 30% higher than 2021 figures.
The news comes just a week after new car prices hit a record high, averaging $48,043 in June.
The supply of used cars available for sale increased slightly during the month.
Car dealerships measure their car inventory in a metric they call “days of inventory.” This reflects how long it would take them to run out of cars to sell at the current rate if they couldn’t acquire more.
The national average supply of days at the end of June amounted to 49, against 48 at the end of May. That’s 27% above levels from a year ago, showing a significant recovery.
The cheapest cars are always the hardest to find
It is still difficult to find a cheap used car. Dealerships ended June with just 33 days of supply of cars under $10,000.
The $15,000 to $25,000 segments had a 40s day supply. The $25,000 to $35,000 price categories, one of the largest for available inventory, had a 50s for days supply. The above $35,000 category had a 62 day supply.