Average Used Prices Top $25,000

By Staff Writer July 02, 2021

Edmunds data reveals that the average transaction price for used vehicles climbed to $25,410 in the second quarter of 2021 compared to $22,977 in Q1 and $20,942 in Q2 2020, marking the highest quarterly Edmunds has on record.

“Tighter inventory and fewer discounts in the new car market are pushing shoppers to seek a reprieve in the used market, and this consumer behavior is what’s also driving used car prices to astronomical levels,” said Jessica Caldwell, Edmunds’ executive director of insights.

Although used car prices are expected to climb to new levels in Q2, Edmunds data reveals that new car prices appear to be leveling off—the ATP for new vehicles hit $40,827 in Q2 2021, compared to $40,070 in Q1 and $38,895 in Q2 2020. Edmunds experts note that this is due to a shift in the mix of vehicles available in the new market: Edmunds data reveals that the share of pickup trucks dropped to 17.1% in Q2 2021 compared to 22% in Q2 2020, while the share of SUVs and passenger cars increased. SUVs made up 54.6% of the market in Q2 2021 compared to 51.3% in Q2 2020, and passenger vehicles made up 23.8% of the market in Q2 2021 compared to 23% in Q2 2020.

“Pricey, optioned-out pickup trucks have been the darling of consumers and the primary culprit in boosting the industry average transaction price during the pandemic, but the well of inventory has finally run dry,” said Caldwell. “Consumers who can be more flexible are buying more passenger cars and SUVs, and although they’re paying inflated prices for these vehicles, comparatively they command much less than their truck counterparts. Other shoppers are forced to sit out of the market until what they want comes back in stock.”

Edmunds analysts note that the car shoppers who are still making purchases in the current market likely represent a more affluent portion of the population.

“This is not a buying environment for people on the fringe of being able to afford new car ownership,” Caldwell said. “Average loan terms are already quite long, and interest rates are relatively low on average, so the consumer really has to make up the difference in price.”

 

Quarterly New-Car Finance Data
(Averages)

 

Q2 2021

Q2 2020

Q1 2021

Term

70.0

71.4

70.0

Monthly Payment

$586

$573

$575

Amount Financed

$35,700

$36,119

$35,040

APR

4.6%

4.2%

4.5%

Down Payment

$4,956

$3,891

$4,729

Quarterly Used-Car Finance Data
(Averages)

 

Q2 2021

Q2 2020

Q1 2021

Term

68.9

67.8

68.2

Monthly Payment

$473

$412

$432

Amount Financed

$26,603

$22,701

$23,958

APR

7.9%

8.2%

8.1%

Down Payment

$3,621

$2,937

$3,345

Rate this item
(1 Vote)
Last modified on Thursday, 08 July 2021 17:15