Coronavirus Causes Uptick In Used-Vehicle Pricing, Edmunds
Edmunds is one of the leaders in the used-vehicle pricing market. Its information provides not only buyers with essential information about the value of their vehicles, but also critical data to media outlets such as Torque News as we attempt to present the best information for our readers.
The Used Market Is Changing
With that said, there’s something interesting happening in the used-vehicle market. The used-vehicle market is changing rapidly. Thanks to the coronavirus, there has been an unseasonally sharp uptick in used-vehicle prices.
Edmunds data reveals that the average listing price for all vehicles hit $21,558 last month. It represents a $708 increase in pricing, compared to June, which represents an “unprecedented historical shirt in the used car market,” Edmunds says. Typically, prices decrease during the summer due to depreciation.
“We’re seeing evidence of more typical new-car shoppers gravitating toward the used car market than usual during the pandemic due to a combination of factors:”
- Consumers are being more fiscally responsible
- Interest rates and CPO (certified pre-owned cars) offers have been extremely favorable
- Inventory has been severely limited on the new side
Edmunds Official Quoted
This information comes from Ivan Drury, Edmunds’ senior manager of insights. “Shoppers might be a bit surprised to find that prices are ratcheting up on used-vehicles because of significantly increased demand,” Drury emphasized.
Edmunds analysts looked at the average listing prices of 2017 models, comparing July to June. It found that price increases spanned nearly all vehicle categories, with some of the most significant price increases in large and midsized trucks, sports cars, and luxury midsized cars.
“It’s a seller’s market right now,” Drury said. “Although used-vehicles continue to offer significant discounts compared to new, used-car shoppers will find themselves in the unusual position where they might not have as much negotiation power because demand is so high and dealers will be less inclined to be flexible.”
“If you’re in the market for a used car, what you see in terms of pricing is likely what you are going to get, so do your research and be prepared to act quickly if you have your heart set on a vehicle.”
A Sampler Of Used Prices
According to Edmunds data, you will find that a large truck such as a Ford F-150 priced at $33,264. It represents a $2,301 increase. In the midsized truck category – Ford Ranger – you will find them priced at $29,457, an increase of $1,812. A heavy-duty truck (the Ford F-Series F-250/F-350) carried a price of $43,044, an increase of $491.
A large SUV carried a price of $37,942. It represents an increase of $1,094. Meantime, a midsized SUV came in at $24,766, an increase of $803. Finally, a compact SUV carried a price of $18,949, for an increase of $512.
In the luxury category, a luxury subcompact SUV carried a price of $23,871, an increase of $931, while a luxury compact SUV carried a price of $27,838 or an $801 increase. A large luxury SUV carried a price of $50,887 or an increase of $667, while a luxury midsized SUV came in at $34,513 or an increase of $641,
Edmunds Guides Are Important
Edmunds guides car shoppers from research to purchase. The guides present in-depth reviews of every new vehicle, shopping tips from an in-house team of experts, plus a wealth of consumer and automotive market insights. Edmunds helps millions of shoppers select, price, and buy vehicles with confidence.
For more automotive research and insights, visit the Edmunds Industry Center here: https://www.edmunds.com/industry/insights/.
Marc Stern has been an auto writer since 1971. It was a position that filled two boyhood dreams: One was that I would write, and two that I write about cars. When I took over as my newspaper's auto editor, I began a 32-year career as an automotive columnist. There isn't much on four wheels that I haven't driven or reviewed. My work has appeared in Popular Mechanics, Mechanix Illustrated, AutoWeek, SuperStock, Trailer Life, Old Cars Weekly, Special Interest Autos, and others. Today, I am the Ford F150 reporter for Torque News. I write how-to and help columns for online sites such as Fixya.com and others. You can follow me on Twitter or Facebook. Most of Marc's stories can be found at Torque News Ford coverage. Check back again and search for Torque News Ford F-150 news for more F-150 truck news coverage.