CoPilot’s Car Price Index Report

August 2024 Used Car Pricing 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

  • Overall price movements were very minor in July, with new car prices down by just $146 (or 0.3%) to an average of $49,544 and used car prices up by $112 (or 0.4%) to an average of $31,764.

    • Both new and used cars remain significantly inflated above their March 2020, pre-COVID levels: new cars are 29% more expensive, while used cars are 34% pricier.
    • Combined with high interest rates, affordability is still a major challenge for car shoppers and causing sales to slow down. New car inventory is up by 38% in the past year, while used car inventory has remained flat despite prices falling by 10% since August 2023.

  • As dealers struggle with a supply glut, we can expect to see financing incentives ramp up as they look to ease the burden of interest rates on consumers. Already, these types of incentives are moving the needle for consumers.

    • For instance, the 2024 Honda Ridgeline, which has an offer of 1.9% financing for 36 months, has seen its market days supply fall by 22% in the past month alone, while the Mazda CX-30 - which has an offer of 0% financing for 36 months - has seen a 30% drop in supply during July.

  • Among segments, used SUVs and pickup trucks – which saw some of the largest increases in price during the pandemic – are now priced closest to their pre-COVID levels, both 23% higher than they were in March 2020. Regardless, given the price of these more expensive vehicles still have a long way to fall (the average used SUV price is $38,301, while the average pickup truck price is $36,662), supply has remained persistently high, down by just 2% for used SUVs and flat for used pickup trucks.

  • Among domestic brand cars, new Dodges and Jeeps (both Stellantis brands) remain the most elevated above their pre-COVID price levels – likely a major contributing factor to their extremely high supply levels (122 market days supply for Jeeps and 115 market days supply for Dodges).

  • Among foreign brands, Nissan - both on the new and used side - is the closest to its pre-COVID levels. New Nissans are $6,001 (or 22%) more expensive than they were in March 2020, while used Nissans are $4,321 (or 24%) pricier than they were pre-COVID.



DATA HIGHLIGHTS

MAKE TYPE



Key Takeaways:

  • Across brands, price movements were minimal in July. New luxury brands saw the largest price increases in July, up by $570 (or 0.8%), while used luxury brands saw the most substantial price drops, down by $312 (or 0.8%).
  • New domestic brands, though down by $399 (or 0.7%) in July, have still seen the most inflation since COVID, up by $13,478 (or 34%) since the start of the pandemic. New luxury brands, meanwhile, are showing the strongest recovery, up by $10,357 (or 17%) since March 2020.
  • On the used side, both foreign and domestic brand cars are 36% more expensive than they were pre-COVID (amounting to a differential of $6,810 for foreign cars, and $8,794 for domestic cars). Luxury brands also show significant inflation from their pre-COVID levels, up by $8,856 (or 28%) since March 2020.
  • Used luxury cars represent the strongest value for consumers, worth 57 cents on the dollar of a comparable new car.



SEGMENTS




Key Takeaways:

  • Monthly price movements among segments were also minimal. Pickup trucks saw the relatively largest drops on both the new and used side, down by $265 (or 0.5%) for new pickups and $296 (or 0.8%) for used pickups.
  • New minivans are seeing the most inflation since before the pandemic, up by $10,444 (or 29%) since March 2020. In comparison, new SUVs, which are the segment priced closest to their pre-COVID levels, are up by $10,395 (or 19%) in that same time frame.
  • On the used side, used minivans are priced the highest above their March 2020 levels, by $8,760 (or 40%). Used pickup trucks and SUVs, meanwhile, are the segments priced closest to their pre-pandemic levels, both 23% higher (amounting to $7,493 for SUVs and $7,167 for pickup trucks).
  • Worth 60 cents on the dollar of a comparable new car, used SUVs represent the best value for consumers.



DOMESTIC BRANDS




Key Takeaways:

  • Among new domestic brand cars, Chevrolets saw the largest monthly declines, down by $801 (or 2%). Meanwhile, new Buicks saw the largest monthly price increase, up by $817 (or 3%).
  • On the used side for domestic vehicles, price movements were minimal, though used Dodges showed the most substantial declines (down by 2%, or $568).
  • Among new domestic brand cars, Dodges, Jeeps, and GMCs remain the most elevated in price compared to pre-COVID. Dodges are $15,771 (or 48%) more expensive than they were in March 2020, followed by Jeeps ($15,776, or 43% more) and GMCs ($19,381, or 42% more).
  • Among used domestic brand vehicles, used Dodges and Fords are most inflated from their pre-COVID values. Used Dodges are $10,639 (or 48%) more expensive than they were in March 2020, compared to used Fords, which are $10,736 (or 45%) more.
  • Used Chryslers, worth 59 cents on the dollar of a comparable new car, represent the best value for consumers among used domestic brand cars.



FOREIGN BRANDS




Key Takeaways:

  • For both new and used foreign brand cars, price movements in July were minimal. Used Hondas saw the largest movement in any direction, up by $281 (or 1%) last month.
  • Since the start of the pandemic, new Kias have seen the most inflation among foreign brands (up by $11,824, or 48%, since March 2020). Meanwhile, new Nissan prices are currently the closest to their pre-COVID levels, up by 22% (or $6,001).
  • Used Volkswagens and used Hyundais remain the most inflated since pre-COVID, with Volkswagens up by $7,697 (or 50%) and Hyundais by $7,283 (or 49%). Used Nissans are closest to their pre-COVID levels, up by $4,321 (or 24%).
  • Worth 61 cents on the dollar of a comparable new car, used Kias represent the best value for consumers among foreign brand cars.



LUXURY BRANDS




Key Takeaways:

  • Among new luxury brand cars, new Acuras and new Cadillacs saw the most significant monthly price increases. New Acuras jumped in price by $1,419 (or 3%), while new Cadillac prices increased by $1,801 (or 3%) in July. Both Mercedes-Benz and BMWs saw a slight price drop in July, both down by 1% (amounting to $905 for Mercedes-Benz and $885 for BMWs).
  • On the used side, Cadillacs saw the largest monthly price increases, up by $833 (or 2%) since early July.
  • Among new luxury brand cars, new Lincolns remain the most inflated since the start of the pandemic, up by $14,999 (or 27%) since March 2020. By contrast, new Porsches are the least inflated, up by $4,562 (or 5%) from their pre-COVID levels.
  • Among used luxury brand cars, used Lincolns have seen the most significant price increases since the start of the pandemic, up by a whopping $14,650 (or 59%) since March 2020.
  • Used BMWs, worth 50 cents on the dollar of a comparable new car, represent the best value for consumers among used luxury brands.


CURRENT NEW VEHICLE INCENTIVES¹

CoPilot has compiled pricing and inventory information for some new vehicles for which dealers are currently offering incentives – a trend we expect to see in the spring buying season.

  • 2024 Dodge Hornet - 0% financing for 84 months on select models

    • Average price: $39,536

    • down by 1% since July 2024

    • Market days supply: 246

    • down by 14% since July 2024

  • 2024 Mazda CX-30 - 0% financing for 36 months

    • Average price: $30,171

    • down by 0.2% since July 2024

    • Market days supply: 82

    • down by 30% since July 2024

  • 2024 Mazda Mazda3 - 0% financing for 36 months

    • Average price: $29,729

    • up 0.3% since July 2024

    • Market days supply: 93

    • down by 16% since July 2024

  • 2024 Honda Ridgeline - 1.9% financing for 36 months

    • Average price: $44,619

    • down by 0.2% since July 2024

    • Market days supply: 91

    • down by  22% since July 2024

  • 2024 Kia EV9 - 0% financing for 38 months on select models, $7,500 cash back on select models

    • Average price: $63,211

    • up 2% since July 2024

    • Market days supply: 69

    • down by 10% since July 2024

  • 2024 Kia EV9 - 0% financing for 38 months on select models, $7,500 cash back on select models

    • Average price: $63,211

    • up 2% since July 2024

    • Market days supply: 69

    • down by 10% since July 2024

  • 2024 Chevrolet Silverado - 1.9% financing for 36 months on select models, $3,500 cash back on select models

    • Average price: $53,915

    • up by 0.02% since July 2024

    • Market days supply: 70

    • down by 19% since July 2024

  • 2024 Jeep Grand Cherokee - $2,000 cash back on select models

    • Average price: $51,161

    • down by 1% since July 2024

    • Market days supply: 121

    • down by 19% since July 2024

  • 2024 Hyundai Elantra - $1,500 cash back on select models

    • Average price: $25,860

    • down by 1% since July 2024

    • Market days supply: 84

    • down by 16% since July 2024

  • 2024 Jeep Gladiator - $1,500 cash back on select models

    • Average price: $52,945

    • down by 1% since July 2024

    • Market days supply: 152

    • down by 6% since July 2024

¹U.S. News & World Report Best Financing & Cash Back Deals




ABOUT COPILOT

CoPilot is the leading AI-assisted car shopping app that provides consumers with an expert partner for high-consideration purchases, starting with car buying and ownership. The platform combines massive real-time data with a winning combination of human expertise and AI-powered search to introduce transparency to the shopping, purchasing and ownership journey. The mobile application takes the time, frustration, and guesswork out of the process, empowering people to easily navigate the risks of shopping for high-value items, and to buy with confidence at the right price and the right time.

Its intelligent agent chatbot, AI Sam, guides consumers through the process of finding and selecting their ideal vehicle, based on their personal preferences – including budget, vehicle type, color, engine, trim, and more – as well as CoPilot’s proprietary insights and analysis about these vehicles. AI provides curated and ranked recommendations for the perfect vehicle to meet their needs, as well as real-time information on its price and availability, based on their location. Any vehicle for sale can even be searched by VIN for decoding and vehicle history. Consumers can also ask the AI Sam chatbot questions about specific cars and the car buying process, allowing them to access all the information they need in one place.

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


Media Contact:

Kerry Close

kclose@groupgordon.com

732-609-2644