Navigating the Unpredictable Terrain of the Used Car Market
The used-car market is still experiencing historically high prices, with the average transaction price in Q1 at $28,381, up 44% from five years ago, according to a report from Edmunds.com. The available pool of cheap vehicles is dwindling, with only 30.6% of used vehicles sold for under $20,000 in Q1, compared to 60.5% in the same period five years ago. The lingering effects of supply chain shortages are to blame for high auto prices, and the new car market may offer some relief if sales stall out and automakers use incentives to move new cars off dealer lots, putting pressure on the used market.
