Difference between new and used automobile markets New data from Edmunds shows it’s wider than ever.

car shopping guide final analysis The report released this week showed that the average price difference between new and used vehicles exceeded $20,000 for the first time ever, with the average new vehicle sold for $47,542 in the third quarter, while a second-hand car was sold for $27,177.

New car prices continue to rise while second-hand car values ​​are falling, resulting in the widest gap ever recorded between average new and used car prices. (Bridget Bennett/Bloomberg via Getty Images / Getty Images)

Used-car prices fell 6.2% last quarter from a year ago, Edmunds said, but those declines aren’t exactly comforting to consumers considering the average used-vehicle price is still up 31.4% from the third quarter of 2019.

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The study’s author, Ivan Drury, director of insights at Edmunds, said: FOX Business“Used values ​​are falling at a steady pace, but are nowhere near free fall as demand from shoppers who want to buy a new car but can’t afford one is increasing, and at the same time second-hand supply is limited. With fewer trade-ins on new car sales, rental agencies are selling almost new It doesn’t sell used cars and it can’t provide that many vehicles to the off-lease market.”

Used car prices fell last quarter, but are still up more than 30% from 2019. (Scott Olson/Getty Images/Getty Images)

He explained that the biggest declines in value in the second-hand market are concentrated on the newest used cars, because the number one competitor for a nearly new used car is the brand-new version on the other side of the lot. Like new car incentives The fact that it starts to increase creates a downward effect on second-hand prices.

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It is also seen that the turnover in second-hand cars is higher at dealers. The data revealed that used vehicles sit on the lot for an average of 36 days before being sold.

As prices continue to rise, new vehicles are sitting at dealerships much longer than they have in the past three years. (Photographer: David Paul Morris/Bloomberg via Getty Images / Getty Images)

By comparison, new cars take an average of 57 days to turn around; this is the longest period in more than three years. This means average discount for new vehiclesIt rose to $1,744 last quarter and may continue to rise as automakers try to move inventory faster.

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Drury said the increased lot times coincide with an increase in year-end sales as well as sales in the 2024 model year.

“This will lead to increased incentives, but it will be up to automakers to determine whether those incentives will be cash, special financing offers or subsidized leases,” Drury explained. “Each approach appeals to a different consumer, but the general theme is that savings are just around the corner.”