Cars.com(US:CARS) prnewswire.comยท2024-05-16 11:30Core Insights - The used-car market is moderating with an 8% drop in demand and a 6% decline in prices, indicating a shift towards stabilization in the automotive industry [1][3][5] Market Overview - The automotive industry is experiencing significant shifts across new, used, and electric vehicle sectors, establishing a new standard for pricing and consumer choice [3] - The average new-car price is stable at approximately $49,111, down 1.5% year over year, while new-car inventory levels have increased by 35% compared to 2023 [5][7] - Used cars have seen a 6% decrease in prices year over year, with the average cost at $28,910, reflecting a notable increase from $21,639 in April 2019 [5][7] Consumer Behavior - Consumers are experiencing fewer pressures to compromise on vehicle choices due to improved supply conditions, although total inventory still trails pre-pandemic levels by over a million units [5] - Demand for new electric vehicles (EVs) has increased by 10% year over year, despite a 5% reduction in new EV prices to an average of $62,927 [5][7] Inventory Trends - New-car inventory has increased significantly, while used inventory has slightly declined by 1.6% year over year, indicating ongoing challenges but also gradual stabilization [5][7] - The used EV market has seen a substantial 20% drop in prices, enhancing its appeal amid cost-conscious consumer behavior [5][7] Pricing Dynamics - The average used car in April 2024 had 59,693 miles, an increase of 4,360 miles compared to April 2019, with costs per 1,000 miles rising from $391 in 2019 to $484 in 2024 [5] - The price gap between luxury and mainstream used vehicles has narrowed, with luxury used trade-ins now commanding 78% more value than mainstream brands, down from 120% pre-pandemic [5][7] Seasonal Trends - In April, the top 10 most searched used cars experienced a seasonal price increase, with the Porsche 911 seeing the largest increase [6]