This month, CarGurus Director of Industry Analytics Kevin Roberts dives into the latest industry trends from April 2022. Take a look at his key takeaways below or download the April edition of the CarGurus Intelligence Report.
Average used listing prices finally decline
After months of anticipation, the top-line average used listing price values declined in April by 0.6%. This number had continued to increase, even with wholesale prices declining, due to higher-priced vehicles sitting on the market as consumers sought out more cost-effective options. While a decline is welcome, there remains much room for improvement with prices up 55% from two years ago.
Inventory levels effectively flat in April
While average days-on-market saw increases in April, the overall inventory levels remained flat, highlighting that consumer demand remains strong for both new and used vehicles but that price is much more of a focus.
Interest in new & used EVs keeping pace with gas prices
Rising gas prices have led to a commensurate increase in both new & used EV demand. Interest in new EVs more than tripled with gas prices on the rise, and used interest saw a similar jump with demand remaining strong as gas prices stayed high. However, the challenge for consumers now is finding an EV, as vehicle production remains constrained and limited used supply exists.
The expectation has been that used vehicle prices would start to decline after tax refund seasonality, and with a relatively soft tax refund season taking place, we’re returning to vehicle depreciation. Beyond prices, another interesting shift has been the increase in EV interest as consumers look to both new and used EVs to offset rising gas prices – what could have been a golden opportunity for EVs to gain market share, though, will likely be limited by a lack of new vehicle production as well as a lack of historical sales for the used market.
To learn more about industry trends, download the April 2022 CarGurus Intelligence Report.