CarGurus’ Q1 review shows that buyers are returning to the new and used car market in hopes of getting a good deal, although it’s still far from pre-pandemic levels.
Over the past four years, car prices have soared, effectively locking all but the wealthiest buyers out of the market. This lack of affordability has so far had only a moderate impact on sales, which have remained surprisingly stable, but data from CarGurus shows that consumers are now fully returning to the market. It is shown that.
“Despite high interest rates, recovering inventory and suppressed prices are fueling pent-up demand,” said Kevin Roberts, director of industry insights and analysis at CarGurus. “Our research shows that sales of both new and used cars have so far exceeded last year’s levels.”
That said, affordability remains strong, even though Roberts notes that average prices could drop by 7% for new cars and 14% for used cars.
Searches for used cars under $10,000 on CarGurus’ platform have increased by about 20% since Q1 2023, but the number of used models in that price range has dropped to 46 since the start of the COVID-19 pandemic. % decreased.
Similarly, the number of new cars priced under $20,000 has plummeted by 95% over the past four years, even though searches for new models are up 33% year-over-year. These data points highlight the wide gap between what consumers want in terms of price and the actual level of affordability that the market can offer.
