CoPilot’s Car Price Index Report

INTRODUCTION

Car prices are inflated in a structural and long-term way. Due to supply issues and increased production costs during the COVID-19 pandemic, new car prices skyrocketed, which also trickled into the used car market. Currently, new and used car price are as follows:

In the context of this new, elevated normal, CoPilot’s Car Price Index analyzes vehicle affordability by looking at current used car prices compared to the replacement cost of a comparable new car (rather than along a historical depreciation curve).

The Index tracks price movements across top brands, segments, makes/models on a monthly basis, as well as in the context of how a car’s current price compares to its pre-COVID price. It also offers insights on the segments, brands, and make/models that offer the best bargains for car shoppers.

KEY TAKEAWAYS

• New car prices decreased slightly in January, down by $491 (or 1%) to an average of $48,714. Overall, they remain 27% (or $10,309) more expensive than they were pre-COVID. 
• Used car prices also slightly decreased in January, down by $206 (or 0.6%) to an average of $32,055. Used car prices are 35% (or $8,372) more expensive than they were in March 2020.
• Prices of new cars made by domestic brands decreased in January, down by $405 (or 0.8%) to an average of $51,860. Compared to prices at the start of the COVID-19 pandemic, new car prices from domestic brands are up 31% (or $12,141) more expensive this month. With the used value of luxury cars worth 59 cents on the dollar to a comparable new car, they represent the best used value for consumers. 
• Among all segments, used SUVs and used trucks represent the best value for consumers, worth 60 cents on the dollar compared to a comparable new car. 
• New Subarus are the least inflated vehicle brand, up just $2,885 (or 9%) since March 2020 to an average of $35,640. They are followed by new Volvos, which are up by 17% (or $8,754) to an average of $60,620. 
• Among all used car brands, used Mitsubishis represent the best value for consumers, as compared to a comparable new car, worth 48 cents on the dollar.

MAKE TYPE

Key Takeaways:

• Monthly price movements among make types were largely minimal in January.
• Since March 2020 (pre-COVID), new domestic brand cars remain the most inflated, with prices up by 31% to an average of $12,141.
• On the used side, both domestic and foreign brands have seen a relatively comparable increase in inflation since COVID, with prices up by 37% for domestic brands to an average of $33,751 and up by 36% for foreign brands to an average of $25,724. Used luxury brands are slightly ahead, up by 38% to an average of $43,151.
• Used cars from luxury brands only slightly decreased in price since January by 0.1% (or $46), but they still represent the best used value for consumers in comparison to new, with their value worth 59 cents on the dollar to a comparable new car.

SEGMENTS

Key Takeaways:

• Price movements were largely minimal among segment types, with new minivans seeing a bump this month, up by 0.9% (or $436) in January to an average of $48,646.
• On the used side this month, minivan prices trended downward by $1,185 (or 3.8%) to an average of $29,692, and crossovers decreased by $191 (or 0.7%) to an average of $28,300. 
• On both the new and used side, minivans remain the most inflated segment, with prices up by 35% since pre-COVID for new models and by 34% since March 2020 for used models (down from 41% in November).
• Used SUVs and minivans represent the best value for consumers, both worth 60 cents on the dollar compared to a comparable new car.

BRANDS

Key Takeaways:

• Since March 2020 (pre-COVID), new car prices from Subaru and Volvo are the least inflated compared to other car brands. New Subaru prices have increased by 9% (or $2,885) to an average of $35,640 and new Volvo prices by 17% (or $8,754) to an average of $60,620. 
• On the used side, Mitsubishi and Chrysler have the least inflated used prices since March 2020 compared to other car brands. Used car prices for Mitsubishi increased by 7% (or $958) to an average of $14,962 and for Chrysler, by 10% (or $1,680) to an average of $24,190.
• Used Mitsubishis provide an excellent value for consumers, worth 48 cents on the dollar compared to a comparable new car.

ABOUT COPILOT

For journalists and publishers, CoPilot’s data has the best real-time view on prices, sales, and inventory in the new and used car market. By monitoring the online inventory of virtually every dealer in the country, every day, CoPilot:

• Provides fresh, comprehensive, and daily data
• Offers insight on the new and used market, broken down by segment, brand, model, and fuel type
• Looks at current retail prices, which (unlike wholesale prices) are a much more accurate reflection of how much consumers are currently paying for cars

For consumers, CoPilot offers the first-ever AI-assisted car shopping app, which:

• Searches virtually every dealer and analyzes millions of vehicles to find the best car for your needs, at the right price
• Helps you avoid add-ons and hidden fees, and negotiate the best price
• Does not take money from dealers, providing customers with truly unbiased recommendations

View the press release on this month’s Index report findings here.

Media Contact:

Kerry Close Guaragno

kclose@groupgordon.com

732-609-2644