Demand Outpaces Supply in the Used Car Market as Consumers Remain Surprisingly Strong New cars represent slightly better value for consumers as their inventory finally replenishes, though a potential UAW strike creates more questions around the car market’s road to normal Used electric vehicle prices remain in freefall, as Tesla price cuts ripple through the market, and used Teslas are the only brand currently priced below normal levels

Despite Interest Rate Hikes, Used Car Prices Still Hover Near Historic Highs While some segments and brands are showing modest price declines, consumers are nonetheless faced with one of the most challenging used car markets in history. Chicago, IL – August 3, 2022 – Despite ongoing macroeconomic turbulence, used car prices showed only slight signs of easing in July, and remain on average $9,384, or 39%, above their projected normal levels, according to the monthly Return to Normal Index report from leading car shopping app CoPilot.

Despite Signs of a Potential Economic Slowdown, Used Car Prices Increase to Near-Record Highs New vehicle inventory shortages delay recovery of the used car market, pushing the price of 1-3 year old cars in particular close to all-time highs While used electric vehicle prices have jumped by 26% since gas prices started to increase in March, prices for gas guzzlers like used SUVs and pickup trucks have held firm

Electric Vehicles Lead Used Car Market’s Return Towards Normal, As Prices Fall Faster Than Ever Used SUVs are the segment closest to returning to normal pricing levels, with a month-over-month price drop of $1,000 translating to substantial savings for buyers However, used car prices on average remain 30% above projected normal levels, indicating the market still has a long way to fall before reaching pre-pandemic levels Tax refund season in February and March can be a good time to sell or trade in your car

New EV Models With Highest Days Supply September 2023

EV Wreckage: Tesla Struggles Expose Broader EV Challenges Traditional automakers face the reality of the technology adoption curve, overproducing EVs significantly relative to consumer demand Customers will benefit as EV prices plummet INTRODUCTION Recent layoffs and slumping sales at Tesla – the clear frontrunner in the electric vehicle market – have put a spotlight on the broader struggles facing the EV market. EV adoption has hit an undeniable roadblock, driven by one key factor: Automakers fundamentally misunderstood the technology adoption curve.

Eventual Interest Rate Cuts Could Bring Long-Awaited Relief to the Car Market But consumers still have a long while to wait: The Federal Reserve will not cut rates until September at the earliest. Even then, it will take some time for the effects to trickle through the market In the meantime, as sales slow and dealers face concerningly high levels of new vehicle supply, they will turn more to financing incentives to entice consumers in the short term As incentives ramp up on electric vehicles and high-inventory gas-powered cars, July sales for both actually outpaced those of hybrids

Eventual Interest Rate Cuts Could Bring Long-Awaited Relief to the Car Market But consumers still have a long while to wait: The Federal Reserve will not cut rates until September at the earliest. Even then, it will take some time for the effects to trickle through the market In the meantime, as sales slow and dealers face concerningly high levels of new vehicle supply, they will turn more to financing incentives to entice consumers in the short term As incentives ramp up on electric vehicles and high-inventory gas-powered cars, July sales for both actually outpaced those of hybrids

CoPilot for Dealers Frequently Asked Questions Are there services that dealers can purchase from CoPilot? Since CoPilot is a service to consumers, we do not accept any payments from dealers. This ensures that our users can feel confident that we are 100% on their side and that our results and advice are based entirely on their interests. Do I need to send my inventory to CoPilot to be included in results?

Fuel Type Data Visualizations February 2024