The Changing Landscape of the Used Car Market: Opportunities for Buyers in 2024
Are you in the market for a new car but feeling overwhelmed by the high prices of brand-new vehicles? Well, you’re in luck! The used car market is currently experiencing a significant decline in prices, making it the perfect time for buyers to snag quality vehicles at reasonable prices.
Recent industry reports have shown that the average price of used cars dropped nearly 7% in Q2 2024, with electric vehicles (EVs) seeing even more dramatic reductions of up to 20%. This shift comes after several challenging years for the used car market, which faced inflation due to reduced new car inventory amid pandemic-related issues.
Experts at Edmunds have reported that the average used vehicle price is now around $27,319, down from $29,382 the previous year. This drop in prices is great news for those looking to buy used cars, as it opens up options that were previously out of reach for many consumers.
One of the factors contributing to the price drop is Hertz’s decision to flood the market with 30,000 used Teslas at competitive prices. This, coupled with rising supplies from major automakers and shifting consumer interest toward hybrids and electrics, has significantly reduced the excess pricing seen just months prior.
Interestingly, while prices for traditional gas-powered vehicles remain relatively stagnant, averaging $47,424 this quarter, prices for used EVs are on the rise due to the influx of models. This provides impressive value to budget-conscious consumers looking to make the switch to pre-owned vehicles.
Many buyers are now able to find certified used vehicles at prices significantly lower than their original MSRP, especially as the depreciation curve for EVs sees the steepest drops within their first and second years. This creates opportunities for savvy shoppers to avoid the bulk of depreciation costs by considering slightly older models.
The current market also offers a wide range of options for buyers, with technology trends influencing purchase decisions. Vehicles from several brands manufactured from 2018 onwards still hold significant value and functionality today, providing cost-effective alternatives for buyers.
Whether you’re looking for a 2012 Tesla Model S, a 2019 Audi e-tron, or a 2018 Jaguar I-PACE, there are plenty of options available at comfortable prices that provide not just value for money but also luxury and features that many consumers admire.
As automakers continue to produce various generations of electric vehicles to cater to increasing consumer demands for sustainability alongside affordability, the used car market is expected to become more mainstream due to decreasing prices and competitive offerings.
So, if you’re in the market for a new vehicle, now is the perfect time to explore the used car market. With prices plummeting, inventory abundant, and electrification on the rise, there are plenty of enticing deals waiting for savvy buyers. Don’t miss out on this opportunity to find the perfect pre-owned vehicle that fits your needs and budget. Happy car hunting!