It’s no secret that used cars have been surging in value, but a new study reveals how drastic things have gotten.
According to a Cox Automotive analysis of vAuto Available Inventory data, the average used car at dealerships was listed for $25,101 at the end of June.
That’s a record and it beat the prior month’s average of $24,414 by a good margin. More importantly, the average price has climbed over $5,000 from a year ago and is up almost $4,000 since early April.
Also Read: Prices For Some Used Cars Are Now Higher Than When They Were New
While that’s bad news for buyers, the upward trend might be losing some steam as Cox noted there were 2.45 million unsold used vehicles on dealer lots at the beginning of July. That’s a slight increase from the 2.38 million units which were available in early June and six percent more than a year ago. However, inventory levels are still off 11 percent from 2019 when the world didn’t have to worry about the pandemic, a chip crisis and a shortage of new vehicles.
“With wholesale prices of used vehicles beginning to retreat from record highs, the worst of the supply crunch in the used market may be behind us,” said Cox Automotive senior economist Charlie Chesbrough. He added that sales of used vehicles have slowed a bit and this has allowed inventories to creep upwards.
The analysis also found the average used vehicle in inventory now has 68,613 miles (110,422 km), while franchised dealers are charging the most for used models as they average $27,013.
