Demand for sedans and fuel-efficient vehicles drove prices higher for used cars in September, according to the CARFAX Used Car Index.
Driving the news: Prices in the used car category, which includes sedans, coupes, hatchbacks, and wagons, rose 1.1% from August to $20,204 in September.
It was the largest gain for any category in the CARFAX Used Car Index.
Prices for used cars are up 8.5% year-over-year.
“There are two factors that I think are in play right now for used cars: They’re cheaper than used SUVs, by a lot, and they typically get considerably better fuel economy than SUVs,” CARFAX editor-in-chief Patrick Olsen told CDG News.
Zooming in: To drive home Olsen’s point, cars are still more than $3,000 less than vans and minivans, and $4,000 below the $24,956 price of SUVs.
Overall, used vehicle prices moved little in September, rising 0.2% or $40.
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Hybrids and EVs fall in price: Hybrids and EVs saw the biggest price drop, down 0.8% during the month.
The average price fell to $33,707.
Olsen noted the influx of off-lease models hitting the used market helped the supply outstrip demand.
Used pickups also fell in price by 0.06% to $35,393.
Bottom line: With gas prices near $4.50, demand is rising for fuel-efficient vehicles and prices are rising for used cars. But even with the recent increases, the category still presents a cost-effective option for dealers and consumers.
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