Late-model used-car prices hit a 2013 low in December, with the average price down more than $700 since the start of the year. It marks the first time this year that the average listing price for a late-model used vehicle on Cars.com has dropped below $22,000.
Though used car demand has been high for several years due to the recession and limited supply, recent reports indicate that used-car prices are beginning to cool. However, with the average vehicle age at an all-time high (now over 11 years), automotive sales – pre-owned, certified and new – are still primed to remain strong for the foreseeable future.
On the new-car side, November reporting indicated substantial year-over-year increases for nearly every automaker. Strong showroom traffic over Black Friday weekend coupled with growing incentives helped drive sales, a trend that’s continued throughout the month of December. All said, rising sticker prices meant the average new car sold at $32,888 in the first half of November, $689 more than in November 2012.