The average three-year-old used vehicle cost buyers $14,443 less dollars then its new equivalent during the second quarter of 2019, according to the latest Used Vehicle report from Edmunds.
This is the largest average price gap between a three-year-old used vehicle and a new vehicle during the second quarter of a given year that the firm has on record, Edmunds noted.
Factors contributing to this price differential new-vehicle buyer preference toward higher-trim variants of vehicles and preference toward larger vehicles overall.
The average sticker price for new vehicles sold in the second quarter of 2019 was $10,042 above the base vehicle price.
“Although these extra options add up quickly on new cars, Edmunds experts say that car shoppers aren't paying the same premium for those features in the used market. Edmunds' report reveals that in many instances, a trim level might cost $10,000 over the base model when new but command less than half of that premium on the used market,” the study noted.
One example given was the cost of a 2014 Honda Accord. In 2014 a new Honda Accord at the highest trim was $10,278 more than the base model. If purchased on the used market today, that 2014 Honda Accord at the highest trim level goes for $4,402 more than the base model.
This price differential between new and used has also been cited as a reason that the new market has been stagnant while the used vehicle has been experiencing healthy values and volume growth. Buyers who have been priced out of the new-vehicle market are finding value in buying used, which has been helping keep wholesale values healthy through much of 2019.
Originally posted on Vehicle Remarketing