Car prices are inflated in a structural and long-term way. Due to supply issues and increased production costs during the COVID-19 pandemic, new car prices skyrocketed, which also trickled into the used car market. Currently, new and used car price are as follows:
In the context of this new, elevated normal, CoPilot鈥檚 Car Price Index analyzes vehicle affordability by looking at current used car prices compared to the replacement cost of a comparable new car (rather than along a historical depreciation curve).
The Index tracks price movements across top brands, segments, makes/models on a monthly basis, as well as in the context of how a car鈥檚 current price compares to its pre-COVID price. It also offers insights on the segments, brands, and make/models that offer the best bargains for car shoppers.
KEY TAKEAWAYS New car prices decreased slightly in December, down by $182 (or 0.4%) to an erage of $49,194. Overall, they remain 28% (or $10,789) more expensive than they were pre-COVID.聽 Used car prices saw a small increase in December, up by $278 (or 0.9%) to an erage of $32,346. Used car prices are 37% (or $8,670) more expensive than they were before March 2020. New car prices from luxury brands also increased in December, up by $1,144 (or 2%) to an erage of $72,323. Compared to prices at the start of the COVID-19 pandemic, new car prices from luxury brands are 19% (or $11,638) more expensive this month. With the used value of luxury cars worth 60 cents on the dollar to comparable new car, they represent the best used value for consumers.聽 Among all segments, used SUVs represent the best value for consumers, worth 61 cents on the dollar compared to a comparable new car.聽 When compared to new prices during March 2020, new Subarus are the least inflated vehicle brands, up $2,711 (or 8%) to an erage of $36,178. On the other hand, new Chryslers are one of the most inflated brands since COVID, up by 24% (or $8,664) to an erage of $45,422.聽 Used Mitsubishis represent the best value for consumers, as compared to a comparable new car, as they are worth 50 cents on the dollar. DATA HIGHLIGHTS MAKE TYPEKey Takeaways:
Monthly price movements among make types were largely minimal in December. Since March 2020 (pre-COVID), new domestic brand cars remain the most inflated, with prices up by 32% to an erage of $12,510. On the used side, both domestic and foreign brands he seen a relatively comparable increase in inflation since COVID, with prices up by 38% for domestic brands to an erage of $33,842 and up by 37% for foreign brands to an erage of $25,862. Used luxury brands are slightly ahead, up by 39% to an erage of $43,421. Used car prices from luxury brands increased since December by 1% (or $532), but they still represent the best used value for consumers in comparison to new, with their value worth 60 cents on the dollar to a comparable new car. SEGMENTSKey Takeaways:
Price movements were largely minimal among segment types, with new minivans seeing a bump this month, up by 0.9% (or $427) in December to an erage of $48,186. On the used side this month, SUV prices ticked upward by $859 (or 2%) to an erage of $41,658 and crossovers increased by $286 (or 1%) to an erage of $28,522.聽 On both the new and used side, minivans remain the most inflated segment, with prices up by 34% since pre-COVID for new models and by 40% since March 2020 for used models (down from 41% in November). Used SUVs represent the best value for consumers, worth 61 cents on the dollar compared to a comparable new car. BRANDSKey Takeaways:
Since March 2020 (pre-COVID), new car prices from Subaru and Volvo are the least inflated compared to other car brands. New Subaru prices he increased +8% (or $2,711) to an erage of $36,178 and new Volvo prices by 12% (or $6,591) to an erage of $60,376.聽 On the used side, Chrysler and Mazda he the least inflated used prices since March 2020 compared to other car brands. Used car prices for Chrysler increased by 6% (or $1,414) to an erage of $24,792 and for Mazda by 12% (or $3,060) to an erage of $24,347. Used Mitsubishis provide an excellent value for consumers, worth 50 cents on the dollar compared to a comparable new car. ABOUT COPILOTFor journalists and publishers, CoPilot鈥檚 data has the best real-time view on prices, sales, and inventory in the new and used car market. By monitoring the online inventory of virtually every dealer in the country, every day, CoPilot:
Provides fresh, comprehensive, and daily data Offers insight on the new and used market, broken down by segment, brand, model, and fuel type Looks at current retail prices, which (unlike wholesale prices) are a much more accurate reflection of how much consumers are currently paying for carsFor consumers, CoPilot offers the first-ever AI-assisted car shopping app, which:
Searches virtually every dealer and analyzes millions of vehicles to find the best car for your needs, at the right price Helps you oid add-ons and hidden fees, and negotiate the best price Does not take money from dealers, providing customers with truly unbiased recommendationsView the press release on this month鈥檚 Index report findings here.
Media Contact:Kerry Close Guaragno
kclose@groupgordon.com
732-609-2644