Prospective car buyers looking for a used set of wheels can take some solace in knowing prices have fallen noticeably over the past year.

AutoTrader, the online automotive marketplace, released its price index report for the fourth quarter of 2024, showing average price reductions in both the used and new vehicle segments, particularly on the used side.

Below are some highlights of the report.

December 2024 average used car prices were $34,445, representing a 6.6 per cent decrease from December 2023.

As an addendum to the average used car prices, this segment also saw a 12.1 per cent decrease during 2024. This occurred because average used car prices shot up in January 2024 and then proceeded to come down through the year, and settled at the December 2024 average.

December 2024 average new car prices were $65,219, a three per cent decrease from the same period a year earlier.

Average battery-electric vehicle prices fell significantly in 2024 as well. Average new and used BEV prices were down 7.8 per cent in December 2024 on a year-over-year basis (averaging $70,682); however, average used BEV prices dropped by 18.4 per cent on a year-over-year basis to $42,045.

Average used luxury brand prices also fell noticeably, coming in 9.6 per cent lower on a year-over-year basis.

AutoTrader reported that vehicle inventory levels have grown, but are still below pre-pandemic levels. On the new vehicle side, the automotive marketplace said inventory levels have reached pre-pandemic levels, except for certain brands, particularly Asian manufacturers, due to an increase in demand for these brands.

Used vehicle inventory is down from last year, but has been trending upwards at the end of 2024.

AutoTrader estimates the fourth quarter of 2024 saw 5.3 more used vehicle sales than the same period a year earlier, with this increase driven by lower prices and lower interest rates. It also anticipates the used vehicle segment to continue to grow in 2025; however, the possibility of U.S. tariffs on Canadian goods remains an unknown factor and how that would impact the economy and vehicle market.

The fourth-quarter 2024 price index report is available on the AutoTrader website.

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