Used-vehicle retail prices up from last year, but lose ground from October
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Though they’re largely beating year-ago figures, prices in most segments of the retail used-vehicle market have decreased this month from October — and the decline has been particularly pronounced for pre-owned hybrids and electric vehicles, according to the latest Carfax Used Car Index.
In an analysis, Carfax said used EV/hybrid prices are down almost $600 from October. It should come as no surprise that this decline is driven by the federal tax incentives that ended Oct. 1.
“That lost incentive has led to a fall in sales for those models, and that is why we’re seeing their prices also fall. As demand drops, typically so do prices,” Carfax editor-in-chief Patrick Olsen wrote in the analysis.
But they weren’t the only ones to see prices soften in November. Used pickup truck prices fell more than $200 month-over-month, while SUVs and luxury SUVs were both down nearly $200.
Prices in the car segments like sedans, hatchbacks and wagons fell more than $100 month-over-month.
Meanwhile, van and minivan price were basically static (up $20), while luxury car prices were up $120, according to Carfax.
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There was more widespread growth in prices, however, on a year-over-year basis.
SUV prices were up 1.5%, pickups climbed 3.0%, luxury SUVs were up 3.2% and prices on luxury cars were up 7.2%. And despite leading the month-over-month declines, hybrid and EV prices were up 2.0% from November 2024, the Carfax data shows.
Van prices fell 3.2% year-over-year and car prices were down 0.2%.
Elsewhere, J.D. Power said used-vehicle retail prices have averaged $29,696 in November, which beats year-ago figures by $725. Consumers have an average equity of $7,822 on their trade-ins, which is $111 softer than November 2024.
The uptick in used prices from a year ago, “reflects the combination of reduced supply of recent model-year used vehicles due to lower new-vehicle production during the pandemic, fewer lease maturities and manufacturers moderating discounts,” said Thomas King, president of OEM solutions at J.D. Power.
“The rise in used-vehicle prices is good news for new-vehicle buyers with a trade-in, although average trade-in equity in November is down a modest $111 year over year to $7,822,” King said in an analysis.
“The number of new-vehicle buyers with negative equity on their trade-in is expected to reach 26.9% — an increase of 3.3 percentage points from November 2024. Although negative equity is rising, it remains below the peak November level of 32.9% recorded in 2019.”