Used vehicle prices reached $20,084 in the third quarter of 2018, representing a 3.5% year-over-year increase, and the highest price since 2005, according to Edmund’s latest Used Car Report.
This increase has, in part, been driven by a scarce supply of sub-$10,000 vehicles, the firm noted.
“Used vehicles under $10,000, the most affordable used-car segment, are also growing increasingly scarce — this segment has dropped from 25% of sales during Q3 2013 to only 16% of sales this quarter,” Edmunds’ report noted.
Other factors contributing to higher prices in the used market are the higher prices that new-vehicles have seen and the shift away from cars and toward trucks, as truck units typically come with higher price tags than their car counterparts.
The late-model off-lease units that have been returning in large numbers to the used market are also contributing to higher used prices, as these units typically command higher price points.
Leasing activity is predicted to continue to grow in the coming years, as is the shift toward trucks. Should these trends continue, used vehicle prices could continue to grow as well.