Auto Industry Sees Significant Shifts in First Half of 2024; Nearly Unrecognizable From Five Years Ago, According to Cars Commerce Industry Insights Report

Market Overview - The used vehicle market has seen a price increase of 34% over the last five years, rising from $21,480 to $28,815, with a current inventory shortage of 1.5 million vehicles [1] - In the first half of 2024, used vehicle prices decreased by 5% compared to the first half of 2023, saving consumers over $1,600 [1] - New-car prices have decreased by 2% year-over-year, maintaining an average of $49,467 [2] Electric Vehicle (EV) Market - Demand for new electric vehicles has surged by 930% since 2019, with supply increasing by 825% and prices rising by 56% [5] - In the first half of 2024, new EV prices decreased by 4% compared to the first half of 2023, saving consumers an average of $2,400 per vehicle, while inventory improved by 53% [5] - The average price for used EVs has increased by almost 50% from $25,096 to $36,908 over the last five years, with a nearly 40% increase in demand for used EVs in the first half of 2024 compared to the same period in 2023 [12] Trade-In Values - Trade-in values have increased by 48% since 2019, reflecting higher vehicle values in a constrained supply market [17] - Despite an 8% decrease in trade-in values in the first half of 2024 year-over-year, values remain elevated, providing leverage for consumers [17] Inventory Trends - The inventory for used vehicles is down 4% in the first half of 2024 compared to the same period in 2023, with nearly 300,000 fewer vehicles available [1] - The broader new-car market has seen a 24% decrease in inventory over the last five years, resulting in 1.7 million fewer vehicles available [13] - New inventory is up 13% in the first half of 2024 compared to the first half of 2023, indicating a recovery in market supply [13]