Car market stabilizes in first half of the year, used supply under pressure

Stability is the main theme of this year’s car market, as cooling prices and healthy inventories have given dealers and consumers a greater sense of normalcy.

Driving the news: In the month of June, new car values fell but not as fast as you might think. Prices were down 1.6% year-over-year last month and 1.2% for the first six months of 2024, according to Cars Commerce.

• New vehicle supply has flooded back to the market. Inventory surged almost 25% in June and is up 13.4% from the first half of last year.

• Cheap new vehicles are making a comeback after almost vanishing during the pandemic. Inventory of cars costing less than $29,000 is up 57.2% from last year.

The intrigue: Used car prices are showing more volatility, falling 6.9% in June and 5.6% in the first half of 2024.

• The pre-owned supply has tightened. Inventory shrank almost 10% year-over-year last month and was down 3.9% for the January-through-June period.

• The number of listings priced between $10,000 and $19,000 is up 10.6% from 2023.

• The opposite is true for expensive models: listings of $50,000 or more are down 26.3%.

Going deeper: Thanks to inventory flooding back into the market, affording a new vehicle is only a little easier today than it was in 2023. But overall high prices are pushing people to shop for alternatives, which is partly why used car supply remains limited.

Looking ahead: Since used cars are getting cheaper, faster, it’s possible we’re also nearing the limit of falling prices. If used inventory continues to decline, we might see similar trends on both sides of the market.

Become an automotive insider in just 5 minutes.

Get the weekly email that delivers transparent insights into the car market.

Join 73,000 others now, it's free:

The Auto Hauler Exchange has revolutionized the way vehicle haulers and vehicle shippers collaborate. AHX's B2B marketplace connects vehicle haulers directly to shippers in a frictionless manner.

The Exchange helps vehicle haulers maximize their capacity while limiting empty miles. The Exchange is the first true B2B marketplace of its kind in the vehicle logistics industry.

By connecting carriers and shippers directly, carriers can save time and choose which opportunities fit their needs each day.

At the same time, shippers can rest assured that their vehicles are being moved by qualified, vetted carriers who fit their vetting program.

The Auto Hauler Exchange has democratized the vehicle logistics industry by eliminating the middleman and connecting shippers directly to available carriers.

Get off the vehicle hauling roller coaster today with Auto Hauler Exchange.