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CARFAX: Used Car Sales Continue Surging Despite Soaring Prices

1. Used car sales surge driven by economic uncertainty and buyer behavior shifts. 2. Prices for used vehicles have risen significantly compared to last year. 3. New car shortages are likely to increase demand for used cars. 4. S&P Global Mobility's data indicates high volume in used car registration. 5. Experts suggest buyers should adopt strategic approaches in a competitive market.

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FAQ

Why Bullish?

The surge in used car prices indicates increased consumer activity, positive for SPGI.

How important is it?

Increased vehicle prices and sales drive revenues, positively influencing SPGI’s metrics.

Why Short Term?

Demand for used cars expected to spike shortly due to economic conditions.

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Nationwide Used Cars Are Selling Twice As Fast As This Time Last Year , /PRNewswire/ -- Tax Day comes amidst growing economic uncertainty motivating many car buyers to make that big purchase — a key driver behind the recent surge in sales and vehicle prices. The latest CARFAX data found both car sales and prices are surging well beyond typical seasonal patterns. In fact, this Spring, the surge in used car prices is nearly two times compared to this time last year and the surge in sales is more than twice what we saw last Spring. "We expect this surge in car prices and sales to continue," said Srinidhi Melkote, Vice President of Business Analytics at CARFAX. "The strong new car demand has pushed new car prices up and supply down, leading some consumers to turn to used cars for a more affordable option. This shift in consumer behavior will drive up used car prices as well, creating a cascading effect across the market." In addition to car buyers ready to use their state and federal tax returns for a down payment, the recent spike in car prices is also exacerbated by the worsening used car shortage. According to CARFAX's Used Car Index, the average cost of used Vans and Minivans climbed roughly $800 nationwide in March, with the most significant increases in the Midwest and Mid-Atlantic regions. Nationally, used non-luxury SUV prices saw an average increase of $400, and used luxury SUV prices jumped $500. This marks a reversal from January, when used car prices for all vehicle types were in decline, hitting their lowest levels since the pandemic. "We're at the front end of a major shift," said Editor-in-Chief Patrick Olsen. "As demand builds and costs continue climbing, buyers should be more strategic to stay ahead in an increasingly competitive market." Here are CARFAX's Top Tips to Help Navigate the Used Car Market: Do Your Research – Always check the CARFAX Vehicle History Report for accident history, service records, and past ownership. Know Your Budget – Explore financing options early and stay open to different makes and models that fit your price range. Test Drive – Experience the performance, comfort, and features before buying. Ask Questions – Inquire about pricing, recent repairs, and any upgrades. Get an Inspection – Have a trusted mechanic do a pre-purchase inspection. Last year, American consumers registered around 16 million new light vehicles and around 38 million used light vehicles, according to S&P Global Mobility, which owns CARFAX. However, with the rate of new car production possibly dropping in the coming months, demand for used cars could rise, leading to even higher prices. For the latest used car listings linked to a free CARFAX Vehicle History Report, visit Carfax.com or get the CARFAX app to shop New & Used Cars. Editor's note: Regional car price trends are available upon request. Interviews with a Carfax expert are available anytime. Please contact Em Nguyen at [email protected]. The Carfax Used Car Index compares the average price of millions of new and used car listings at Carfax.com. For the latest trends in used car prices, visit Carfax.com. About CARFAX CARFAX, part of S&P Global Mobility, helps millions of people every day confidently shop, buy, service and sell used cars with innovative solutions powered by CARFAX® vehicle history information. The expert in vehicle history since 1984, CARFAX provides CARFAX Car Listings, CARFAX Car Care, CARFAX History-Based Value and the flagship CARFAX Vehicle History Report to consumers and the automotive industry. CARFAX owns the world's largest vehicle history database and is nationally recognized as a top workplace by The Washington Post. Shop, Buy, Service, Sell – Show me the CARFAX®. S&P Global Mobility is a division of S&P Global (NYSE: SPGI). S&P Global is the world's foremost provider of credit ratings, benchmarks, analytics and workflow solutions in the global capital, commodity and automotive markets. About S&P Global Mobility At S&P Global Mobility, we provide invaluable insights derived from unmatched automotive data, enabling our customers to anticipate change and make decisions with conviction. Our expertise helps them to optimize their businesses, reach the right consumers, and shape the future of mobility. We open the door to automotive innovation, revealing the buying patterns of today and helping customers plan for the emerging technologies of tomorrow. S&P Global Mobility is a division of S&P Global (NYSE: SPGI). S&P Global is the world's foremost provider of credit ratings, benchmarks, analytics and workflow solutions in the global capital, commodity and automotive markets. With every one of our offerings, we help many of the world's leading organizations navigate the economic landscape so they can plan for tomorrow, today. For more information, visit www.spglobal.com/mobility. SOURCE CARFAX WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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