According to the updated Consumer Price Index, used car prices fell to a more than three-year low in July 2024 as demand for used cars declined.
According to Cox Automotive, the average list price for a used vehicle in July was $25,251, more than 10% below 2022 prices.
However, the group points out that it remains difficult to find affordable cars, with only 39 days’ supply of cars under $15,000. Overall, the supply of used cars is 53 days’.
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Prices for new cars are also falling, although not to the same extent.
The average new car price was $48,401 in July, down from a high of $49,929 in December 2022. According to Cox Automotive, the average American needed 40 weeks’ income to buy a new car in December 2022. In July, it was 37 weeks’ income.
In July 2024, there was a slight decline in the number of cars sold compared to the previous year.
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“New vehicle affordability improved in July, even as auto loan availability declined,” said Jonathan Smoke, chief auto economist at Cox. “As a result, new vehicles are slightly more affordable but harder to obtain due to continued weakness in auto loan performance.”
