Trade-In Values Slip

By Staff Writer November 18, 2020 395

Used vehicle trade-in values are returning to normal levels after skyrocketing during the summer months, according to Edmunds.

Data from Edmunds reveals that the average value for all vehicles traded in during the month of October dropped to $15,874, a 3.3 percent decrease compared to $16,411 in September. The average value for 3-year-old vehicles also dipped in October to $20,401, a 1.7 percent decline compared to $20,747 in September.

“After experiencing a remarkable surge over the past few months, used car values are finally cooling down now that some of the major supply issues faced by the industry are being addressed,” said Jessica Caldwell, Edmunds' executive director of insights. “While inventory is still tight in some areas, we're expecting to see more lease returns make their way to the used market. This steady supply of near-new inventory will help address the increased demand we've been seeing in the market during COVID-19.”

Edmunds also took a look at trade-in values for some of the most popular cars, SUVs and trucks sold in the U.S. – the Toyota Camry, Honda CR-V and Ford F-150 – and found that they all notably decreased across the board in October compared to September. The average trade-in value for all used Toyota Camrys dropped to $12,508, a 7.6 percent decrease compared to $13,539 the previous month. The average trade-in value for all used Honda CR-Vs fell to $15,461, a 3 percent month-over-month decrease from $15,943. And the average trade-in value for all used Ford F-150s dropped to $23,677, a 5 percent decrease compared to $24,911 in September

Although used car values have decreased, Edmunds data reveals that the average transaction price (ATP) for used vehicles has stayed relatively flat because of the increased supply of near-new off-lease and off-rental vehicles hitting the market.

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Last modified on Monday, 23 November 2020 14:29