The average listing price for a new vehicle reached $49,726 in September, keeping turnover times for segments above $50,000 at more than 60 days. Meanwhile, vehicles priced below $40,000 are experiencing sales declines despite rapid lot turnover due to strict supply limits and model discontinuations like the Ford Escape. Foreign manufacturers including Toyota, Honda, and Volkswagen are now the sole providers offering new compact options priced under $25,000. These combined market pressures are compelling shoppers to turn toward the secondary market, escalating compact wholesale values.
Key points
American automakers have entirely abandoned compact passenger sedans, relinquishing the b…: American automakers have entirely abandoned compact passenger sedans, relinquishing the budget market to international competitors.
Severe inventory deficits explain why affordable vehicles are selling rapidly even as the…: Severe inventory deficits explain why affordable vehicles are selling rapidly even as their overall sales volumes decline.
Diverted demand toward used vehicles is accelerating wholesale prices for compact cars fa…: Diverted demand toward used vehicles is accelerating wholesale prices for compact cars faster than almost any other sector.
Sources checked by our analysis pipeline: 1
Consumers are concerned about rising fuel prices and affordability — and that could be showing up in how fast the least expensive cars are moving off dealer lots.
From the first quarter to the third, the number of days it took a dealer to sell a vehicle priced between $20,000 and $29,999 dropped 20%, according to data from Edmunds. That pace of selling saw the biggest acceleration of any price segment.
Vehicles priced from $30,000 to $39,999 sold about 18% faster, and the number of days it took to sell the next tier — $40,000 to $49,999 — dropped nearly 12%, according to Edmunds.
All of those price segments also took fewer days to turn than their more expensive counterparts. The lower-priced tiers took under 60 days to move off lots, with the least expensive ones selling the fastest. Every segment of vehicles above $50,000, meanwhile, took more than 60 days to sell.
"If you're a dealer and you have inventory and that price point, you're definitely noticing," said Edmunds' Director of Insights Ivan Drury.
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