The average used car price has increased 9.5% (roughly $2,200) since 2019. This is due to the pandemic causing mass factory closures, leading to a decrease in available vehicles. In turn, we saw a 25% decrease to car dealership inventory overall, both new and used. Less inventory equals higher demand, and when demand goes up, so do the prices.

Despite the increase in overall price, some more popular models have actually dropped in price. Discontinued models, such as the Dodge Dart and the Chevrolet Volt, have seen the largest drop in price in the past year. The Volt, for example, dropped 8.4% over the past year alone.

Vehicles that have seen the largest jumps in price are coupes and convertible. Coupes had a jump over 15.9% and convertibles especially jumped 27.2%. The largest jump on an individual vehicle is the BMW Series 5, which jumped an astounding 25.4% since 2019.

Trucks are another large segment that saw an increase during the pandemic. Trucks are known for increasing year-over-year, but the average price jumped 14% since 2019. Experts contribute this to the increase in home renovations consumers started as well as an increased popularity in camping as a safe way to get out of the house during quarantine.

In order to find a bargain, there are two pieces of advice. The first being to consider a different option. With there being a decrease in overall available inventory, consumers may be faced with overpaying for the specific vehicle they had in mind. By searching for another comparable option, they can save themselves money and get a better value for a similar vehicle. The second piece of advice is to consider timing. Buyers that have the luxury to wait it out will see price drops within the coming months.

With prices for vehicles being a constant ebb and flow, it is imperative to have a Dealer Management System such as Deal Pack to assist with pricing your vehicles correctly. With its integration with Kelley Blue Book and JD Power for book values, you never have to second guess whether you are pricing your inventory competitively. This allows you to quickly see wholesale, trade, private party, and retail values for your inventory. If you have any questions or would like to set up a demo for this feature, please reach out to our support line at 800-526-5832 or support@abcoa.com.