CarGurus released its 2024 U.S. August Intelligence Report. The report found used inventory levels have declined again in August, now down 2% year-over-year (YoY) and 7.4% below August 2022 levels. Meanwhile, new-vehicle lots continue to swell even further with August up 55.1% YoY – and an eye-watering 193.3% compared to August 2022. Interestingly, however, both new and used listings saw a MoM decline in days-on-market (albeit for different reasons).

In tandem, preliminary sales data suggests that used vehicles were in high demand in August, reaching the highest reading since March 2022. According to Kevin Roberts, CarGurus’ Director of Industry Insights, the reasoning could be the following:

"Our Vehicle Demand Index speaks to the growing consumer need for affordability. Although overall used demand is up 7.4% year-over-year, cars priced under $30,000 saw significant increases in activity while vehicles over this threshold actually saw an annual decline in demand. With used car demand at its highest levels since March 2022 and inventory down year over year, we can expect competition to remain high for this segment."

Additional Report Findings: 

• Average prices for both new & used vehicles:Tighter used inventory levels have put surprising upward pressure on used vehicle prices, which came in at $28,500 for the month of August. On the new side, however, prices seem to be approaching 2022 levels, coming in at $50,100 (down 3.7% YoY). 
• Alternative powertrain listings increase in share:New ICE vehicles have quickly fallen to just under 82% of available dealer listings, a steep shift from 93.1% in August 2022. While hybrids are still the dominant alternative powertrain at over 9% of listings, EVs are quickly growing in pace with them.
• New vehicle demand saw an uptick toward Labor Day weekend:With the CarGurus Vehicle Demand Index reading increasing 11.8% YoY.
• EV prices seem to be back on the up-and-up:Data from August provided further confirmation that used EV prices seem to have found a bottom, with average prices cresting at $38k, the highest level since January 2024.
• The average prices of new hybrids are getting closer to ICE-powered vehicles:Average hybrid list prices coming in at $49.2k while ICE-powered vehicles came in at $48k.