There Are More New Car Deals To Be Had, But Used Cars Are Still the Better Bargain

• While new car prices have dropped by just 2% in the past year, used car prices have fallen by 7%, and most 1-3 year old cars are falling faster in price than their new counterparts
• Used electric vehicle inventory has grown significantly, bringing more affordable models into the market
• If you can wait, there will be more deals on new cars in the coming months as dealers will slash prices and offer incentives to move record-high inventory off their lots

Chicago, IL – June 7, 2024 – While new car prices continue to drop and dealers continue to offer generous incentives, used cars may offer a better deal for consumers, according to the latest data from AI car shopping app CoPilot. New car prices have fallen by $1,278 (or 2%) in the past year, to an average of $49,980. However, those declines pale in comparison to used car prices, which have fallen by 7% since June 2023 to an average of $31,591.

There are a number of incentives being offered on new cars, particularly for higher inventory brands like Ram (121 market days supply), Dodge (88 days supply), Ford (81 days supply), and Nissan (76 days supply). However, listing prices have remained persistently high, and in combination with near-record high interest rates, it remains a challenging new car buying market.

Need an Upgrade Now? Consider Nearly-New

For consumers who are willing to look into the used market, nearly-new (1-3 year old) cars present an attractive alternative. Their prices have fallen by 8% in the past year, down to an average of $37,116. Furthermore, the price difference between most new and 1-3 year old models has widened significantly: While new cars were 20% more expensive than 1-3 year models in June 2023, they are now 26% more expensive. This trend has played out in a noticeable way among bigger, more expensive vehicles, including:

• SUVs: Last June, new SUVs were 12% more expensive than 1-3 year old models. Now, their price difference has widened to 29% - with new SUVs priced at an average of $65,518 and 1-3 year old models listed at $50,851 on average.
• Pickup trucks: Last year, new trucks were 17% more expensive than 1-3 year old models. This difference has since grown to 28%, with new pickups priced at an average of $58,958 and 1-3 year old trucks at an average of $46,128.

“Compared to last year, there’s now a much bigger difference between the price of a new car and one that’s 1-3 years old,” said Pat Ryan, CoPilot CEO and Founder. “These nearly-new models offer a great opportunity for consumers who need to buy in the short term: They’re most comparable to a new car with typically minimal wear and tear, and they’re at their lowest price levels in over six months. For consumers who can’t wait for new car prices to drop further, 1-3 year old cars are a sensible alternative.”

Consumers Gravitate To Used EVs

While consumers have been slow to adopt new electric vehicles, they are showing more interest in the growing used EV market. Prices of used EVs have eased significantly, down by 15% in the past year to an average of $38,224, and overall EV inventory has increased by 32% as the market continues to grow. These used EV price declines are especially striking in comparison to their new counterparts: In June 2023, the price difference between a new and used EV was 31%; that difference has now risen to 40%.

Nearly-new (1-3 year old) EVs have seen particularly substantial price drops in the last year, down by nearly 20% (or over $10,000) to an average of $44,069. Additionally, 1-3 year old EVs are nearly 12% cheaper than new cars overall. As a result, over the past year, sales have increased, and supply of nearly-new EVs on dealer lots has fallen by 35% to 36 market days supply (compared to 46 market days supply for gas-powered 1-3 year old cars).

“The used EV market has grown substantially, and as a result, prices have finally started to normalize,” Ryan added. “Currently, 17% of used EVs are listed below $20,000 and nearly half of the market is priced below $30,000. This is a major factor in helping to break down what once was a major barrier to entry to EV ownership. Used EVs have been one of the best bargains in the market since the start of the year, especially as new car prices remain stubbornly high, even with incentives. They’re a great option for consumers who need to buy now, especially if you’re willing to take on the logistical challenges of EV ownership.”

One notable exception to consumers’ waning interest in new EVs are the smaller and more affordable models currently available – for instance, Volvo reported strong May sales of its EX30 compact EV. With Tesla CEO Elon Musk also indicating in April the company’s priority to produce a $25,000 EV, the industry is starting to respond consumers’ willingness to try out EVs at the right price.

If You Can Wait, New Car Deals Are Around the Corner

In recent months, new car inventory has hovered near-record high levels, currently at 65 market days supply (which is also a 41% increase in the last year alone). However, incentives and deals from dealers and manufacturers have largely been concentrated among makes and models with exceptionally high supply levels, like the Chevrolet Silverado (offering $8,000 cash back on select models) and the Ford F-150 Lightning (offering 2.9% financing for 36 months on select models). As the summer progresses, dealers will be forced to offer more widespread deals if they hope to eventually normalize their inventory levels. Consumers who can wait even a few months may be able to get a better deal on the vehicle of their choice in late summer or early fall.

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.

Media Contact:

Kerry Close

kclose@groupgordon.com

732-609-2644