Used Vehicle Market Poised for Record Sales in 2019
SANTA MONICA, Calif., March 20, 2019 -- Used vehicle sales in 2019 are poised to hit the highest level since the recession, according to a new report from the car shopping experts at Edmunds. In 2018, 40.2 million used vehicles were sold in the U.S.; in 2019, Edmunds analysts predict used vehicle sales could approach 41 million. Edmunds experts say rising vehicle prices and high interest rates are pushing buyers out of the new market, and a record number of lease returns this year will give shoppers more options than ever in the used market.
"Typically sales of new and used vehicles follow the same pattern — if sales of new vehicles rise or fall, so do sales of used vehicles, and vice versa," said Ivan Drury, Edmunds' senior manager of industry analysis. "But now we're seeing new vehicle sales fall while used rise, indicating the market has reached a flash point. New cars are getting so expensive that they're out of reach for many car shoppers, but there are so many more affordable used vehicles coming off lease that the market is naturally shifting in that direction."
Edmunds data shows that in 2013, the price gap between new and 3-year-old used vehicles was 56 percent, amounting to more than $11,000 in savings on average. In 2018, that number grew to 62 percent, totaling nearly $14,000 in savings on average. Edmunds data also reveals that new car interest rates jumped by 17 percent in 2018, whereas rates for used vehicles have risen at a slower clip, with interest rates increasing by 9 percent in the same period.