The availability and pricing of used vehicles has started to stabilize after several years of volatility since the COVID-19 pandemic.
CarGurus, an automotive shopping website, released its U.S. 2024 October Intelligence Report earlier this month and found an influx of 2022 and 2024 models helped offset the overall decline in used vehicles caused by significant drops in 2020 and 2021 listings, per the report.
Additionally, the CarGurus Used Vehicle Availability Index increased 2.3% month over month in October but levels remain down 2% year over year, according to the report which discovered the shift in supply combined with stronger than anticipated demand for used vehicles helped stabilize prices in the third quarter.
Used car prices began to decline again in October, down 0.9% month over month and 5% year over year, per the report.
Bob Sheridan, owner of D&S Auto Sales on South Washington Avenue in Scranton, expressed optimism that vehicle purchases will pick up at his shop.
“Sales have been a little slow for everybody across the city because (people) were worried about the general election and where the interest rates were,” he said. “They were so high. Now, it’s starting to break a little bit because interest rates are starting to come down. I think they’ll start moving now, but we’re going into our slow months. We don’t start picking back up until late January and February. We’re selling, but not like we should be. We’re holding on and hoping things change around for the best.”
Sheridan noted his lot is full with cars and trucks, however, prices remain elevated from pre-pandemic numbers.
“Prices have come down at auctions, but they’re higher than they normally should be,” he said.
Sheridan stresses the current market sets up well for customers considering making a used car purchase before income tax checks start rolling in, potentially driving up demand and depleting inventory, which could raise prices again.
“Between now and January, if you have the money, is a great time to buy,” he said.
Rich Crossin, dealer principal of Bonner Chevrolet in Kingston, noticed used car prices start to level off during the last nine months.
“They came down 10 to 15% to more historical pricing,” he said.
An increase in new car inventory helped lower the used prices, Crossin said.
“That has a lot to do with it because it creates trades and we also have a lot more used cars available today than we did during COVID,” he said. “And now that new cars are available, a lot of the used car buyers are starting there.”
While the market has been becoming more balanced, Crossin noted monthly payments on used cars are still elevated.
“The interest rates are so much higher today than they were two or three years ago,” he said.
Crossin expects the used car market to return even more toward pre-pandemic norms in 2025 and beyond.
“Back to the old way of doing business,” he said. “Good deals for the customer and lower (interest) rates we hope.”
The level of inventory at Bonner Chevrolet also looks more like the days of years past.
“Every vehicle we get is in demand, but we should be in good shape over the next six months with what’s here and what’s coming,” he said. “We have an abundance of used cars right now.”
