Auto Industry Sees Significant Shifts in First Half of 2024; Nearly Unrecognizable From Five Years Ago, According to Cars Commerce Industry Insights Report
A Turning Point for Electrification: Since 2019, New-EV Demand Up 930%, Supply Soars 825%, Prices Up 56%
CHICAGO, July 26, 2024 /PRNewswire/ -- Cars.com Inc. (NYSE: CARS) (d/b/a "Cars Commerce Inc."), an audience-driven technology company empowering the automotive industry, reveals the first half of 2024 has brought notable changes to the automotive industry in its Industry Insights Report. This comprehensive report, crafted by Cars Commerce's expert data analysts, delves into macro and micro automotive market insights by analyzing supply, demand, pricing and consumer behavior data from across the company's platform, including Cars.com®, Dealer Inspire and AccuTrade.
"The car market continues to recover and evolve, with June seeing ongoing price stabilization. When you take a step back for a broader perspective, however, the market has seen sweeping changes since the first half of 2024, particularly with the growing influence of electric vehicles as consumer demand and inventory continue to increase," said Rebecca Lindland, senior director of industry data and insights at Cars Commerce. "And compared to five years ago when the market was last stable, today's market is almost unrecognizable. Consumers are paying more than 30% higher prices for new and used cars with more than a million fewer vehicles available on each side of the market — but they're also making significantly more on trade-ins."
EV Market Transformation
The EV market has undergone a dramatic transformation, evolving from a niche segment to a mainstream choice for many consumers. Over the last five years, the demand for new EVs has surged by an astonishing 930%. This growth is driven by several factors: a wider range of choices, better access to charging, increased consumer awareness about environmental impacts, supportive state and federal policies, government rebates and tax incentives, and advances in battery technology that offer increased range and alleviates consumer anxiety. Despite a 56% price increase for new EVs since 2019, the first half of 2024 has brought some relief to shoppers. Prices are down 4% compared to the first half of 2023, saving consumers an average of $2,400 per vehicle, and inventory has improved by 53% in the same time period.
The new EV market is not alone in its transformation. Over the last five years, the average price for used EVs has increased by almost 50% from $25,096 to $36,908 and supply has jumped by almost 500%. In the first half of 2024 alone, demand for used EVs has surged almost 40% compared to the first half of 2023. Inventory has grown by 45% in the first six months of the year compared to 2023, adding 38,000 more vehicles for buyers and causing prices to drop nearly 20%, saving consumers over $8,500.
New- and Used-Car Markets: Prices Drop and Inventory Climbs Amid Supply Chain Recovery
The broader new-car market has also evolved. Consumers are now spending over $11,000 more on a new vehicle, with prices rising 30% from $37,790 to $49,106 over the last five years. Inventory is down 24% in the same time period, resulting in 1.7 million fewer vehicles available for shoppers. Market recovery continues, allowing manufacturers to increase production and resulting in wider availability of new cars. In the first half of 2024, new inventory is up 13% compared to the first half of 2023, and new-car prices have decreased slightly (down 1%), maintaining an average of around $49,000 for the past nine months.
The used market has followed a similar path. Over the last five years, the average price of used vehicles has surged by 34%, from $21,480 to $28,815, and the ongoing inventory shortage has created a competitive market with 1.5 million fewer used vehicles available. The first half of 2024 has offered some relief to buyers, as prices have decreased by 5% compared to the first half of 2023, saving consumers over $1,600. This decrease reflects a normalization from the peak prices seen in 2023, which were driven by intense demand and limited supply. Inventory for used vehicles is down 4% in the first half of the year compared to first half of 2023, with nearly 300,000 fewer vehicles available.
Trade-In Values Offer Leverage for Car Buyers
Trade-in values have increased by 48% since 2019, reflecting the higher value of vehicles in a market with constrained supply and high demand. Despite an 8% decrease in the first half of 2024 year over year, trade-in values remain elevated, providing added leverage for consumers negotiating the purchase of a new or used car.
Key June Monthly Year-Over-Year Highlights
- New-car prices are down 2% YoY, maintaining an average of $49,467.
- The average price of a used car is $28,912, a decrease of nearly 7% YoY.
- Interest in new EVs is up 20% year-over-year with prices down slightly (2% YoY), yet prices remain 30% higher than non-EVs.
- Demand for used EVs is up 55% YoY, supported by a nearly 14% price drop and an average age of almost 3 years as EV owners are purchasing new and trading in their lightly used EVs.
To download the full report, visit www.CarsCommerce.inc.
*Inventory, searches and list price on Cars.com. A third-party cyber incident impacted dealer inventory data beginning June 19, 2024.
ABOUT CARS COMMERCE
Cars Commerce is an audience-driven technology company empowering the automotive industry. The Company simplifies everything about car buying and selling with powerful products, solutions and AI-driven technologies that span pretail, retail and post-sale activities – enabling more efficient and profitable retail operations. The Cars Commerce platform is organized around four industry-leading brands: the flagship automotive marketplace and dealer reputation site Cars.com®, award-winning technology and digital retail technology and marketing services from Dealer Inspire, essential trade-in and appraisal technology from AccuTrade, and exclusive in-market media solutions from the Cars Commerce Media Network. Learn more at www.carscommerce.inc.
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SOURCE Cars Commerce
