2023 Brings Little Relief for Car Shoppers
Used car prices fell by less than 2% year-over-year, while new car prices increased by 1%
Most vehicle brands and segments saw only modest price declines across the year
Amid waning consumer demand, EVs are the only segment that fell significantly in price, down 22% overall
Chicago, IL – December 11, 2023 – 2023 saw little movement from car prices that soared to record highs amid the pandemic, according to data from AI car shopping app CoPilot. Used car prices fell by just $745 (or 2%) to an average of $31,030, while new car prices ticked slightly upward, by $964 (or 1%) to an average of $50,364.
While some parts of the market, such as used minivans (up by $666, or 3%, to an average of $24,189), increased in price somewhat this year, most sectors – such as used SUVs (down by just $429, or 1%, to an average of $41,006) – saw only modest declines.
“There’s no doubt about it: This was one of the most challenging years to buy a car, especially for more budget-conscious consumers,” said CoPilot CEO and Founder Pat Ryan. “Prices saw a substantial run-up in the spring, driven by confident consumers at the upper end of the market, and they never fully recovered. Across most brands and segments, car prices have barely moved from the levels at which they started the year. When you also factor in multiple interest rate hikes, there were not many deals to be had for car shoppers this year.”
Used electric vehicles were the only segment of the market to see substantial declines. Tesla cut prices to new models in December 2022, which had compounding ripple effects throughout the market this year. At the same time, consumer interest in EVs fell off significantly, causing dealer inventory to surge. As a result, over the past year, used Teslas fell by $17,259 (or 31%) to an average of $39,274, while used EVs overall fell by $11,840 (or 22%) to an average of $41,747.
“EVs have moved beyond the early adoption curve, and are struggling to gain mainstream interest,” Ryan added. “More consumers are gravitating toward hybrid vehicles as a more established option as they look to transition to a more eco-friendly vehicle, but remain apprehensive about some of the remaining roadblocks with EVs, including charging and infrastructure. As a result, dealers are struggling to move EV inventory off their lots, causing them to drop prices substantially over the past year.”
EVs also led the pack in terms of brands that saw the largest price declines in 2023, in part due to Tesla’s multiple price discounts throughout 2023 and faltering consumer demand for other, less popular EV brands. As a result, Lucid vehicles fell in price by 35%, whileTeslas were down 30% and Polestars by 25%falling the most. In terms of individual makes and models, the Audi e-tron (down 45%), Toyota Mirai (down 37%), and Tesla Model X (down 36%) saw the most substantial price drops.
About CoPilot
CoPilot is the world’s first AI-assisted car shopping app. Its intelligent agent assistant, AI Sam, guides consumers through the process of finding and selecting their ideal vehicle, based on their personal preferences – including budget, vehicle type, color, engine, trim, and more – as well as CoPilot’s proprietary insights and analysis about these vehicles. It provides curated and ranked recommendations for the perfect vehicle to meet their needs, as well as real-time information on its price and availability, based on their location. Consumers can also ask AI Sam questions about specific cars and the car buying process, allowing them to access all the information they need in one place.
Media Contact:
Kerry Close
732-609-2644
