OTTOMOTO® NEWS

Used car market trends in the US in 2024

In Q2 2024, the used car market in the US saw significant activity and some noteworthy trends. Overall, the market showed resilience despite some challenges.

  1. Sales Volume: Total used vehicle sales for the quarter were robust, with Cox Automotive estimating that sales finished near 36.2 million units for the year, a slight improvement from the previous year​ (Cox Automotive Inc.)​. The retail segment, which includes sales through dealerships but excludes private transactions, was projected to reach 19.2 million units​ (Cox Automotive Inc.)​.
  2. Market Dynamics: The used car market continued to face supply constraints, especially for newer used vehicles, a lingering effect from the reduced new car sales during the pandemic years​ (Cox Automotive Inc.)​​ (Mordor Intelligence)​. However, the market has started to regain some normalcy, with stable supply levels and falling vehicle prices helping to boost sales​ (TD Economics – Canada)​.
  3. Price Trends: Used car prices have been stabilizing after a period of volatility. For instance, the average price of used electric vehicles (EVs) has seen a decline, with the Recurrent Price Index showing a 32% year-over-year drop to an average of $27,800​ (Electric Car Hub)​. This stabilization is attributed to the influx of newer model-year vehicles into the second-hand market and competitive pricing from manufacturers like Tesla.
  4. Market Innovations: New retail methods and market competitors have also driven market expansion. Online platforms and home delivery options have broadened the market reach for used cars, making it easier for consumers to purchase vehicles​ (Mordor Intelligence)​.
  5. Challenges and Future Outlook: Despite a temporary setback in June due to a cyberattack affecting a major dealer management services provider, the market is expected to continue its growth trajectory in the latter half of the year. The Federal Reserve’s anticipated gradual reduction in interest rates later in the year is expected to further stimulate sales​ (TD Economics – Canada)​.

Overall, while there are some challenges, the used car market in the US is showing signs of resilience and steady growth as it adapts to changing conditions and consumer preferences.

Published On: August 8th, 2024

MORE NEWS

Go to Top