Director of Industry Analysis
Used vehicles saw their highest price in the second quarter since Edmunds.com has been tracking the data – reaching an average of $18,800. Market strength is coming from an influx of newer vehicles and strong demand and pricing for older used vehicles. Car shoppers have been financing their vehicles over a longer period of time to afford the higher prices with average APRs rising. Shoppers are also returning to the “new vs. used” question as the price gap tightens is some segments.
Near-New (5-Years Old or Newer) Vehicles Led 5.1% Y-O-Y Lift in Volume:
Near-new inventory pumped up by lease returns and trade-ins, supporting CPO sales.
Average Amount Financed per Vehicle is $20,732 Up 3% from Last Year:
Nearly 60% of used buyers seeing 5% or lower APR, but many have APRs over 10%.
While Off-Lease Playing Big Role in Market, Trade-ins Sizable Part of Near-New:
About 25% of trade-ins from used vehicles contributed towards near new inventory.