Average Used Vehicle Price Falls - Kelley Blue Book (2024)

FAQs

Average Used Vehicle Price Falls - Kelley Blue Book? ›

The average used car in America was listed for $25,540 last month – up slightly from the month before but 4% lower than a year ago. The numbers come from Kelley Blue Book parent company Cox Automotive.

The average transaction price for used cars in the fourth quarter of 2023 dipped to $28,371, a 4.4% decline from $29,690 a year prior, according to Edmunds data. "Depreciation didn't exist" in the last few years for used cars due to high demand, Yoon explained.

“Fair” condition means that the vehicle has some cosmetic defects that require repairing and/or replacing and requires some mechanical repairs. The paint and bodywork may require refinishing and body repair. The engine compartment has leaks and may require a tune up. This vehicle may have some repairable rust damage.

The accuracy of KBB values can vary depending on several factors, such as the condition of the vehicle, its location, and the current market demand for that particular make and model. KBB values are based on a number of factors, such as the car's make, model, year, mileage, condition, and features.

We update or verify Trade-In Values, Private Party Values and the used car Fair Purchase Price at least once a week. However, an update doesn't necessarily mean that every vehicle will change in value.

Experts say that 2024 will be the best year to purchase a new car since 2019. As interest rates slowly drop throughout the remainder of the year, payments will become more manageable. Don't overlook manufacturer rate promotions, as they can save you thousands of dollars.

Potential problems with Blue Book values include a delay as price information is assessed, the consumer tendency to overrate the value of the car they are selling or trading in, and a mismatch between wholesale values listed by Kelley and the prices used by dealers, who access special industry-only pricing info.

It is Kelley Blue Book's estimate of what a consumer can reasonably expect to pay this week in their area for a new vehicle configured with their selected options. It includes destination charges, but excludes taxes, title, fees and any available special offers.

Kelley Blue Book doesn't provide price information for cars in poor condition. Examples of vehicles in poor condition are ones with severe mechanical issues, substantial cosmetic defects, a branded title (such as salvage or flood) and so on. Learn how Kelley Blue Book determines vehicle price information.

Should I go by nada or KBB? ›

KBB factors in the condition of the vehicle, local market conditions, and popularity of the vehicle, so their prices tend to be a lower than NADA. NADA values tend to lean higher because they assume cars are in good conditions. Insights can be gained from both values, but KBB looks at more factors.

Both Edmunds and Kelley Blue Book are reputable sites that offer pricing information. The accuracy of an appraisal has a lot to do with the information the owner provides. If you overstate the vehicle condition or don't check off the correct trim level and options, your value is less likely to be accurate.

If you have a unique or rare vehicle, the KKB value can be inaccurate. The KBB is not a good source for antique or classic vehicle values, as it only provides information for vehicles less than 21 years old. Understanding the general value range of a vehicle is an important factor when buying or selling.

Unfortunately, they don't have any pricing information for cars older than 21. So, your instinct was right in heading to KBB first, but if your car's from 19-anything, then you'll have to use other means to find its value. Kelley Blue Book's online database only offers values for cars that are 21 years old and newer.

Rather than focus as much on market conditions, regionality and seasonality, CARFAX looks to the vehicle itself for the keys to its valuation. CARFAX is a subsidiary of IHS Markit, a London-based information provider. CARFAX is not affiliated with Kelley Blue Book or Cox Automotive.

Retail used car prices are falling slowly in 2024

Car shoppers are saying no to ridiculously high prices, especially as interest rates remain high. In late 2023, retail used car prices eliminated the year's overall gains, returning to where prices were when 2023 began.

New vehicle sales in the U.S. are on pace for a seasonally adjusted annual rate of 15.8 million in 2024, Cox Automotive said in a press release Monday. While the seasonally adjusted annual rate was down slightly from the 15.9 million units sold in December, it's about 0.7 million units ahead of January 2023.

In general, when interest rates are high, buying a new car costs more if you finance part of the cost because you pay more interest. When interest rates are lower, a car costs less. In general, new cars have lower interest rates on loans while used cars have higher rates; however, used cars also cost less.