October Auto Market Update: What’s Happening in New, Used and EV Markets

The automotive market shows a dichotomy of key trends: Stabilizing new-car prices and discounts offer more options, while growth in the used market is occurring within affordable, higher-mileage examples amid limited supply of late-model-year inventory. Used-EV searches outpaced new EVs in October, as lower prices and tax credits boosted demand, while the high prices of new EVs slowed turnover, prompting OEM production adjustments.

Increased Discounts and Inventory Stability in New Cars

After years of volatility due to supply chain issues, the new-car market has finally stabilized, with the average price steady at $49,000. More inventory has returned to dealer lots, allowing automakers to offer attractive discounts. Ford, Chevrolet and Honda notably increased production, driving a 26.4% year-over-year inventory boost. The end-of-year period might be an ideal time for consumers to buy a new car as discounts increase, providing options for budget-conscious shoppers.

Demand Shifts Toward Higher-Mileage Vehicles in the Used Market

The used-car market remains steady, with demand particularly strong for affordable vehicles, especially as late-model options become harder to find. The average mileage of used cars for sale reached 60,737 miles, reflecting a 2.2% increase year over year. Consumers searching for affordable used cars may need to adjust their expectations toward older, higher-mileage options due to the limited availability of newer models.

New Vs. Used EVs: Price and Demand Divide

The EV market is diverging between new and used segments. New EVs saw a 35% increase in inventory but are sitting on lots longer, with an average price of $62,000 slowing adoption. Recognizing the high price barriers, automakers are adjusting production on new EVs to better align with demand. Brands like Ford and Nissan scaled back on specific models, including the Mustang Mach-E and Ariya, respectively. In contrast, used EVs experienced a 9.1% price drop year over year, sparking a 37% increase in demand. With significant depreciation on premium EVs like the Mercedes-EQ models, high-end EVs are becoming more accessible, making the used-EV market an increasingly viable alternative for consumers looking to enter the EV space affordably.

David Greene
Industry and Marketplace Analytics Principal, Cars Commerce