--- title: Used Car Prices Are Falling So Much They’re Driving Down Inflation description: Used car prices are the lowest they've been since 2021, driving overall inflation lower. Here's how to find good deals on used cars now. authors: - name: Pete Grieve role: Lead News Reporter url: https://money.com/author/pete-grieve/ bio: Pete Grieve is a personal finance reporter at Money who frequently writes about news and trends related to car buying, auto insurance and gas prices. education: University of Chicago, BA Political Science at_money_since: 2022 articles: 602 covers: - Personal Finance - Banking - Business - Career Advice - Credit - Credit Cards - Debt - Economy and Politics - Education - Health and Wellness - Housing - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Professional Services - Retirement - Shopping - Taxes social: - https://twitter.com/pete_grieve - https://linkedin.com/in/pete-grieve-b5aa02138 - https://www.facebook.com/petegrieve4 editors: - name: Brad Tuttle role: Senior Editor url: https://money.com/author/brad-tuttle/ bio: Brad Tuttle is a former senior editor at Money with over 10 years’ experience covering a vast number of personal finance topics, including careers, cars, travel, budgeting, investing, insurance, credit cards, consumer psychology, real estate, banking, and shopping and deals. education: Columbia University School of Journalism, MS at_money_since: 2014 articles: 366 covers: - Personal Finance - Banking - Business - Career Advice - Credit - Credit Cards - Economy and Politics - Education - Health and Wellness - Housing - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Pets - Professional Services - Retirement - Shopping - Taxes - Technology social: - https://twitter.com/bradrtuttle - https://linkedin.com/in/brad-tuttle-834b225 former_staff: true published: '2024-07-22T18:49:08.000Z' modified: '2024-07-22T18:49:42.000Z' section: Personal Finance tags: - cars - News word_count: 475 canonical: https://money.com/used-car-prices-driving-down-inflation/ type: NewsArticle source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Couple shopping for a used car](https://img.money.com/2024/07/News-Used-Cars-Low.jpg) Used car prices have plummeted in the past year, reaching their lowest point since 2021. The price declines come after a prolonged supply crunch in the new vehicle market caused used values to skyrocket. Not long ago, the rise in used car prices was one of the [key reasons the overall inflation rate was so high](https://money.com/may-2022-inflation-eggs-airfare/). Now, used vehicles are now the No. 1 category driving down inflation in the economy, according to an analysis of consumer price index (CPI) data by car shopping app [CoPilot](https://www.copilotsearch.com/press-release-07-24/). The June CPI report showed used vehicle prices are down 10.1% in the past year, after falling 1.5% in the last month. Why are used car prices falling? CoPilot CEO Pat Ryan explains that the supply of new vehicles is up about 50% since July 2023, which has had a spillover effect on the used market. ## New or used, your car is an investment. Make sure it's protected! ### Get the coverage you need without breaking the bank. Click your state to get a free quote today. [View Rates](https://money.com/pr/gd49efb4d648?ap_referrer=%2Fused-car-prices-driving-down-inflation%2F) “Consumers have finally found themselves with more options to buy new, rather than used, and are capitalizing on it after years of pandemic-driven vehicle shortages,” Ryan said in an email. “As a result, some of the price pressure in the used market has eased.” According to [Cox Automotive](https://www.coxautoinc.com/market-insights/used-vehicle-inventory-june-2024/), the average list price for a used vehicle is $25,251, a 7% decrease from a year ago. It’s also the lowest average price since the summer of 2021. Despite the recent declines, used cars are still about 30% more expensive than before the pandemic. Also, high interest rates for [car loans](https://money.com/best-auto-loan-rates/) are pushing up buyers’ monthly payments. (In the first quarter of 2024, the average used monthly payment was $523, per [Experian](https://www.experian.com/content/dam/noindex/na/us/automotive/finance-trends/2024/experian-safm-q1-2024.pdf), compared to $414 in 2021.) “Affordability remains challenging for consumers, and supply is more constrained at lower price points,” Scott Vanner, a senior analyst at Cox Automotive, wrote in a report. ## Finding deals on used cars To find a [good deal on a used car](https://money.com/used-car-prices-fall-best-deals/), experts recommend expanding your vehicle search beyond local dealerships with online car search tools. You can also save money by looking at vehicles in lower demand — dealerships will be more willing to negotiate if a car has been on their lot for a few weeks. Certain segments of the used vehicle market have seen steeper price declines in the past year. According to CoPilot, average prices for used SUVs, trucks and electric vehicles are down more than the rest of the used market: - The average price of a 4- to 7-year-old SUV is $31,904, down 21% in a year. - The average price of a 4- to 7-year-old truck is $32,899, down 17% in a year. - The average price of a used EV is $37,851, down 14% in a year. ## Getting Car Insurance for your new car is an integral step in the purchasing process ### Make sure you have the coverage you need at a competitive price. 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