Prices are not going down. In fact, used car prices are climbing, even though the easy money from tax credits is gone. It’s frustrating for anyone hunting for a deal. New cars stay expensive. So does the used market. You’d think buyers could find relief on the pre-owned lot. They haven’t. Not yet.
A recent Carfax study backs this up. Since January, used sedans, hatchbacks, wagons are up more than $1,350 on average. But those are the quiet segments. Pickup trucks? Up about $1,500. Luxury cars? Also $1,500. SUVs joined them.
Vans and minivans hurt more. Average prices there jumped over $2,000 this year. Luxury SUVs added nearly $2,800. That’s a 4.9 percent increase. Regular luxury cars moved even faster. They rose 12.6 percent year-to-year despite sitting flat in May.
Everything Climbed in June
June didn’t bring relief either. Prices rose across every segment, though some jumped higher than others. Used luxury cars barely moved, gaining just $10 for the month. SUVs added roughly $200.
Used sedans, luxury SUVs, minivans? Up around $350 each. Pickup trucks pushed past $400. Then there were hybrids and electric vehicles.
They jumped the hardest. $850 in a single month.
Gas prices are spiking due to tensions in the Middle East, specifically involving Iran. When fuel costs go up, people suddenly want fuel efficiency again. Demand for used EVs and hybrids surged. Consequently, prices did too. On average, these cars are now $3,600 more expensive than last year. An 11.9 percent hike.
Great if you own one. Terrible if you need to buy one.
“Rising gas prices reignited demand right when the federal used clean vehicle credit was set to expire.”
The government incentive allowed buyers to knock up to $4,000 off qualifying used EVs costing $25,000 or less. It was supposed to end on September 30. Experts thought interest would cool after that deadline approached. The pump disagreed.
Overall used car prices rose about 1.3 percent in June. Slower than May’s 3 percent spike, but still a gain. That averages to roughly $350 added per vehicle this month compared to nearly $900 last month.
Location Matters More Than You Think
Where you live changes the math significantly. In the Mid-Atlantic, used EVs and hybrids saw average June price jumps of over $1,400. In the Midwest? It was only about $950.
Van and minivan buyers saw opposite fates. Prices in the Midwest went up $200. In the Plains region? They fell by $450.
Luxury buyers in the Northeast paid the price. Those vehicles climbed more than $1,200. Buyers in the West got lucky with a drop of nearly $900. It was the largest regional decline for any segment.
And if you like trucks in the South, be prepared. Prices there rose by over $1,200.
So we have expensive gas, expired tax credits, and prices that keep moving upward. Who is actually buying? Probably anyone who has no other option. The market hasn’t found a bottom yet. Or maybe it just doesn’t want to.
