You Paid How Much for That New Car?

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You Paid How Much for That New Car?

Used Car Prices lag even as New Car Payments Top $700 Per Month. But, the market rightsizing after a couple of wild years in the car market.

Used Car Sales Slow even as New Car Payments Top $700 Per Month.

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It’s June 2023 and the average new car-payment is more than my first mortgage payment but that’s not slowing sales. 

And even with new car prices at an all-time high, used car sales are back on the downslope.

But, what we’re seeing is actually the market rightsizing after the pandemic caused a couple of wild years in the car market. 

So, as crazy as the market seems now, this is all ok. 

Plus, we’re finally seeing some manufacturer incentives on new cars to help combat the astronomical prices they’re charging. 

Before we go any further, here are the cars selling best and worst on the Carmigo Marketplace going into June:

Red Light x Green Light

  • Green Light
      • Camry
      • Tucson
      • RAV4
      • Soul
      • F150 (half tons)
  • Red Light
    • Mini Cooper
    • Pathfinder
    • Luxury Sedans
    • Cherokee
    • Santa Fe Sport and “Sport” Trim SUVS

You can read more about each of these models and why we chose it for the list over at the Red Light x Green Light report.

Overall, Used Car Prices are Stagnant and Sales are Down, But that’s OK

The used car market looks to have continued its return to the mean, which paused briefly this spring. 

used car prices return their slide to the mean.

When we talk about free market capitalism and letting the markets decide, this is that. Markets don’t go up forever. Even Steph Curry misses shots sometimes. 

Used sales and prices have held pretty solid over the past few months, considering the volatility in the market since the beginning of the pandemic supply shortages.

Volatility in Used Car Prices

I’ve always lived near the gulf coast, home of oil companies and hurricanes. 

After a major hurricane disrupts gas supply, gas prices go up fast. But sooner or later, supply catches back up through a combination of repairing the storm damage and of folks using less gas due to prices. 

Going into the Pandemic, in 2020, the manheim index was around 150, steadily rising a couple points most year.

But when new cars stopped being made during the pandemic, used car prices skyrocketed, higher than they’ve ever been. Just like with gas, those numbers are going to end up going back down sooner or later.

And this is a fairly steady return to the mean, which is the best we can hope for.

While no one wants to sell as a market is on the way down, it’s not going back up anytime soon. So if you’ve got to sell a used car, now is as good a time as any.

Average Used Car Prices Higher Than Last Month, Lower Than Last Year

The average used vehicle listing price was $26,969 going into last month, the highest since the beginning of 2023, but that’s still down 4% from last year. 

This could be due partially to a preference for inexpensive used vehicles. With vehicle prices near all-time highs, people are reaching for the cheap stuff.

used car prices affected by days of supply

Days’ supply for under $10,000 vehicles was 31. Days’ supply for vehicles priced between $10,000 and $15,000 was 37, between $15,000 and $20,000 was 40 and $20,000 to $35,000 was 44. Vehicles priced above $35,000 had the highest days’ supply at 46.

New Car Sales Outperform Bold Predictions, Even in the Face of Rising Prices

Cox predicted May would see 20% increase in new vehicle sales, and their predictions were beaten. I totally didn’t expect to see new sales to continue going up because of prices and continually increased availability. 

But, I’m not the expert, Charlie Chesbrough is. He broke it down in a way I hadn’t considered last month:

“New-vehicle sales will show strong gains this month over last year’s levels, and on the surface, this is a bit surprising. Interest rates are substantially higher than a year ago, as are vehicle prices, and yet sales will increase year-over-year. The reason? Vehicle shoppers now have a much better chance of finding something that fits their needs. Pent-up demand, held back by limited product availability last year, is now being fulfilled as inventory levels improve around the country.”  

People couldn’t buy new inventory because it wasn’t available, and now that it is, people are buying the cars they saved up for, even if its way more expensive than it was a few years ago.

“New-vehicle inventory continues to improve, supporting a pick-up in the sales pace,” said Charlie Chesbrough, Cox Automotive senior economist. “Clearly, pent-up demand is being unleashed. How much pent-up demand exists is the question. We still expect sales to slow in the second half as economic headwinds, particularly rising interest rates, grow.”

New Car Prices Can’t Stay This High

I’m still skeptical about how sustainable this trend is because the affordability index is getting a little out of control.

The average list price for a new car is now above $47,000, which brings the average monthly payment on a new car loan to more than $700. 

We’re Finally Seeing Some New Car Price Incentives

New car prices may be at record highs, but at least manufacturers are beginning to issue discounts.

The average total incentive is higher than it’s been in the past year, coming in at $1,714 per vehicle.  

New vehicle prices are slowly ticking down after reaching all-time highs this winter. But those dips aren’t enough to boost sales, which dropped slightly to just under 1.3 in April. 

At the same time, new car inventory has basically returned to pre-pandemic levels, meaning that long waiting lists are no longer propping up new car prices, and manufacturers are introducing incentive pricing. 

New car prices will likely continue to ease, but new car sales should continue to benefit from the current highs. 

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5 Best Cars to Sell in June 2023

best cars to sell in october

5 Best Cars to Sell in June

Carmigo is bringing you the best-selling used cars for June (or at least our prediction). We’ve analyzed trends on our marketplace as well as the general car market and compared those with U.S. economic trends to help you decide if this is the month to sell your car, or if you should consider waiting.

New Car Sales Up Heading Into Summer

It’s June 2023 and new car prices are flirting with all time highs. Combined with increased interest rates, the average monthly car payment in 2023 has officially topped $700.

But prices can’t stay that high forever. In fact, manufacturers are beginning to implement incentive pricing to help ease the burden of buying a new car. 

Plus, used car prices are beginning their return to normal (hopefully new car prices will too).

Is this the month to sell your car? Depends, do you have a red light or a green light car this month?

Best Cars to Sell in June

green light chat box

You've Got the Green-Light

Toyota Camry best cars to sell in november, Toyota Camry best cars to sell in may, and one of the best cars to sell in june

For the last four months, Camrys have ranked near the top of sales on the Carmigo marketplace. Month over month, we list more and sell more Camrys than nearly any other car. 

The reason is simple: You can’t beat the Camry. They hold value well and are always in fairly high demand because of their year-over-year reliability, fuel economy, and safety standards.

Hyundai makes great SUVs. In fact, most months a Hyundai SUV has the highest sales ratio on the Carmigo Marketplace. That means we sell most of the Hyundais we list. And lately, the Tuscon has lead the way. 

the Hyundai Tuscon is one of the best selling cars in june
the toyota rav4 is one of the best cars to sell in October

The Toyota RAV4 is one of the models of vehicle we don’t see often (because owners will drive these things until the wheels fall off). 

But when we do see someone list a RAV4, it sells fast and it usually gets some solid offers. Because RAV4 fans are fanatics. 

Last month, we predicted the Kia Soul would be a Red Light Car. Boy were we wrong. We listed 7 Kia Souls in May, and we sold them all. In fact, we sold them all for right at market value. 

The Ford F150 is America’s truck for a reason. This truck has been selling well, selling in volume, and selling for competitive market prices on the Carmigo Marketplace for most of 2023. 

In fact, half-ton pickup trucks overall are dominating the used car market right now, especially the Carmigo Marketplace. 

Worst Selling Used Cars

red light chat box

You've Got the Red Light

The Mini Cooper sold terrible on the Carmigo Marketplace in May. It sold so bad, that it didn’t sell at all.

We listed a handful and they got a few offers, but nothing very substantial. With the market as high as it is, I have to think cars that are smaller than economy cars and almost as expensive as luxury cars don’t have a strong footing. 

The Nissan Pathfinder not only didn’t sell, none of the Nissan Pathfinders on the Carmigo Marketplace received an offer last month. I’ve never seen that before. The Pathfinder, like the Mini Cooper, simply doesn’t fit well into such an expensive market. It’s not a luxury vehicle, but it’s not cheap. It’s not a work truck, but it’s not small. 

Across makes and models, luxury sedans are depreciating in value faster than other models. This means people who are trying to sell a luxury sedan often have more money in them than they can get back from a buyer. Until the new and used car markets level back out, Luxury Sedans aren’t going to sell better.

Last month, predicted Jeeps would sell well in May, and they did. But the Jeep Cherokee didn’t sell well in May. In fact, all of the Cherokee trims and models did poorly, including the Grand Cherokee. June probably isn’t going to be a whole lot different for the Cherokee. 

Hopefully things will look up after the summer used car market doldrums. 

SUVs like this 2022 hyundai santa fe are some of the best cars to sell in july

The Hyundai Santa Fe has sold pretty well in recent months. It even came in as a Green Light car in May. 

But the Santa Fe Sport trim has done pretty bad on the Carmigo marketplace. Part of this could be because the market is so expensive right now that folks are either going the cheaper route, or going for the full thing. Since the sport model usually sits somewhere in between, it could just be overlooked. 

The Best Way to Sell Your Green-Light Car

Shameless Plug: A lot of these price trends are based on the Carmigo Marketplace data. Carmigo is a one-of-a-kind platform that lets private car owners sell their used cars to dealerships.

Note: These predictions are simply that: predictions. We cannot tell the future. They are based on trends we’ve seen in the marketplace but are not a guarantee of future market outcomes.