Used car prices saw a broad decline in November, with hybrid and electric vehicle (EV) values experiencing the most significant drop, according to the latest Carfax Used Car Index. The average list price for used hybrids and EVs fell by nearly $600 month-over-month, a direct consequence of the elimination of the federal tax credit of up to $4,000 for these vehicles.
The removal of this key purchase incentive has cooled demand for used green vehicles, leading to a predictable downturn in their overall value. This trend presents a potential buying opportunity for consumers who have been waiting for more affordable entry points into the hybrid and EV market.
All Used Prices Were Down in November
The softening in prices was not limited to electrified vehicles. Most used vehicle segments saw prices fall in November, reflecting broader consumer concerns about the economy and tightening personal financial situations around the holidays. Used pickup trucks saw the second-largest decline, with average prices dropping by more than $200. Similarly, the popular SUV and Luxury SUV segments both saw prices fall by just under $200. The average price for traditional cars, including sedans and hatchbacks, also decreased by over $100.
However, not all segments experienced a decline. The market for used luxury cars continued its upward trend for the eighth consecutive month, with average prices rising by another $120 in November. The van and minivan segment also saw a modest increase of about $20.
Regional Used Car Trends
Regional data revealed significant variations in price trends across the country. The Northeast and Southeast regions saw prices fall across all vehicle segments, with hybrids and EVs leading the decline. In the Northeast, this segment dropped by over $800, while in the Southeast, the decrease was more than $700. In contrast, the Midwest saw a substantial increase of nearly $600 in the average price for luxury cars. The Plains and Southwest regions bucked the national trend for pickup trucks, with both seeing slight price increases for that segment.
As is tradition in the CARFAX Used Car Index, they asked the question if now is the time to buy a used car. For consumers, the current market presents a mixed picture. While prices are softening in many key areas, overall used-car values remain high compared to historical norms. This environment benefits sellers, particularly those with in-demand trucks and SUVs, who can still command strong prices for their trade-ins. For buyers, the report suggests that flexibility and thorough research are crucial. The falling prices for hybrids and EVs could signal a prime opportunity for shoppers interested in those models, but diligence is key to securing a fair price in a still elevated market.
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