Edmunds: Used Values Hit All-Time High

By Staff Writer April 28, 2021 388
New-car shoppers are increasingly turning to the used car market in search of better deals New-car shoppers are increasingly turning to the used car market in search of better deals

The average value for all used vehicles traded in during the month of March hit an all-time high, climbing to $17,080, compared to $14,160 a year ago. Edmunds analysts say that demand is soaring for used vehicles as chipset shortages continue to severely constrain the supply of new vehicles in the market. New vehicle inventory on sale at dealerships nationwide was down by 36% in March 2021 compared to a year ago.

Jessica Caldwell Edmunds' executive director of insights

According to Edmunds data, trucks retain the greatest value and command the highest trade-in prices of all consumer vehicles in the market right now. Edmunds analysts looked at all 2018 model year vehicles traded in during March and determined their respective retained values by comparing the average trade-in price of each model against its average original MSRP. Ford F-250 Super Duty, GMC Sierra 2500 Heavy Duty and F-350 Super Duty all tied for the No. 1 spot on the list, retaining 80% of their value on average. The complete Top 20 list, together with the full list of vehicles with the greatest retained value broken out by segment, can be found below.

“The chipset shortage is wreaking havoc on new vehicle production, but we're also seeing surprisingly healthy car shopper demand, which has likely grown stronger in light of vaccines rolling out quicker than anticipated,” said Jessica Caldwell, Edmunds' executive director of insights. “These two factors combined are disrupting the market in a way we haven't ever really seen before.”

Edmunds analysts say that consumers who might have typically been new-car shoppers are increasingly turning to the used market in search of more alternatives and better value. Traffic to the Edmunds website's used vehicle inventory pages jumped approximately 300% in March compared to a year ago.

Nevertheless, March sales were at near record levels for new cars.

“It seems impossible, with the pandemic still raging in many parts of the country, that new vehicle sales could be at the highest March level in more than two decades, but here we are,” said Caldwell. “Until automakers can start cranking out new vehicles again, we're going to see increased demand and higher trade-in values for used vehicles as well.”

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Last modified on Tuesday, 04 May 2021 12:56