SANTA MONICA, Calif., Aug. 5, 2020 /PRNewswire/ -- Used vehicle prices are seeing an unseasonal sharp uptick due to unique market conditions created by the coronavirus (COVID-19) pandemic, according to the car shopping experts at Edmunds. Edmunds data reveals that the average listing price for all used vehicles climbed to $21,558 in July, marking a $708 increase compared to June. Edmunds experts note that this is an unprecedented historical shift in the used vehicle market, where listing prices typically decrease during this time period due to depreciation.
"We're seeing evidence of more typical new-car shoppers gravitating toward the used car market than usual during the pandemic due to a combination of factors: Consumers are being more financially responsible, interest rates and CPO offers have been extremely favorable, and inventory has been severely limited on the new side," said Ivan Drury, Edmunds' senior manager of insights. "Shoppers might be a bit surprised to find that prices are ratcheting up on used vehicles because of significantly increased demand."
Edmunds analysts took a look at average listing prices for 2017 model year vehicles in July compared to June and found that price increases spanned across nearly all vehicle categories, with some of the biggest price increases in large and midsize trucks, sports cars and luxury midsize cars.
"It's a seller's market right now. Although used vehicles continue to offer significant discounts compared to new, used-car shoppers will find themselves in the unusual position where they might not have as much negotiation power because demand is so high and dealers will be less inclined to be flexible," said Drury. "If you're in the market for a used car, what you see in terms of pricing is likely what you're going to get, so do your research and be prepared to act quickly if you have your heart set on a vehicle."
About Edmunds Edmunds guides car shoppers online from research to purchase. With in-depth reviews of every new vehicle, shopping tips from an in-house team of experts, plus a wealth of consumer and automotive market insights, Edmunds helps millions of shoppers each month select, price and buy a car with confidence. Regarded as one of America's best workplaces by Fortune and Great Place to Work, Edmunds is based in Santa Monica, California, and has a satellite office in Detroit, Michigan. Follow us on Twitter, Facebook and Instagram.