Price gap between new and used cars breaks record

The average used car now costs $20,000 less than a new vehicle, the biggest price gap on record.

Driving the news: New vehicle prices have plateaued while preowned prices have steadily declined, causing the difference between the two to widen over the last year, according to Edmunds.

• In Q3, the average new car cost $47,542, while the average used car cost $27,177, representing a record-breaking gap of $20,365.

• That’s roughly $4,000 wider than at the start of 2019, although used car prices remain elevated from pre-pandemic averages by about 31.4%.

Zooming in: New cars are getting more affordable thanks to bigger incentives, even though used vehicles are leading in price declines. However, it doesn’t seem like consumers are taking as much notice.

• Q3 discounts were more than double their average last year, amounting to $1,744.

• Despite this, days to turn (a measure of how long it takes a vehicle to sell) is at a three-year high for new cars, averaging 57 days.

Bottom line: While new vehicles are getting cheaper, price declines have fizzled out, leading customers to ignore the market even with bigger-then-ever incentives. This is driving deal-hungry buyers to focus on used cars, a trend likely to last into the coming months as normalization continues to have a bigger impact on pre-owned values.

Become an automotive insider in just 5 minutes.

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

Join 81,000 others now, it's free:

Tired of brokers overcharging and slow shipping?

Auto Hauler Exchange is connecting shippers and carriers directly on our online marketplace — no brokers allowed. With 5,000+ vetted carriers, dealers can move vehicles faster and explore new markets. On average, it takes just 5 days from listing to delivery. Don't know how long your vehicles are taking to ship? That’s another reason to try Auto Hauler Exchange.

Get analytics and reporting to better understand your costs and timelines. Best of all, it’s free to list your vehicles, with a transparent fee for shipping — no hidden costs.

Ready to speed up your shipping? Contact the Auto Hauler Exchange team to set up your shipper account today!