Trying to decide between a used car and a new one? You might want to jump on that pre-owned vehicle.
New data from iSeeCars shows that used cars between one and five years old are selling at nearly the same pace as new cars right now, and they could soon be selling faster.
The average used car was on the market for 49.2 days in July, compared to 52.4 days a year prior. New cars sat on dealer lots for just one day less—48.2 days, but that’s 25.7% longer than a year ago, when the average sale time was 38.4 days.
Prices on both new and used cars were fairly steady compared to July 2022, with the average used car selling for $33,240 (a 3.6% drop in price), while new cars sold for $45,936 (a 3.8% jump).
And the surge in interest in electric vehicles seems to be waning as well, with both new and used models now taking twice as long to sell as they did a year ago.
“Demand is keeping prices relatively stable on new and used cars, but popular models are taking longer to sell,” said iSeeCars executive analyst Karl Brauer. “Consumers are taking more time to buy and are seeking value outside mainstream models. They’ve also shifted away from electric vehicles, creating a backlog as dealers try to find EV buyers.”
The average price of a used EV dropped 38.9% in July, compared to the same period in 2022, falling from $64,049 to $39,156.
The shift in buyer habits comes as consumers are keeping their existing cars for longer periods as higher interest rates and high prices, compared to pre-pandemic times, make it a financial burden to purchase a new (or used) one.