Price gap between new and used cars hits all-time high

Published On Oct 31, 2024, 6:00 AM

A recent report from Edmunds indicates that the price gap between new and used cars has reached an unprecedented high of over $20,000. In Q3 2024, new vehicles averaged $47,542, while used cars averaged $27,177. While used car prices fell by 6.2% compared to last year, they remain 31.4% higher than in Q3 2019. The decline in used car values is partly due to an increasing supply of new cars, which have longer turnover times at dealerships. Furthermore, higher auto loan rates and rising insurance costs are shifting consumer preferences towards more affordable vehicle options.