LEXINGTON, Ky. (LEX 18) — If you've been in the market for a new car in the last few years, you probably know the sticker shock that comes with it.
According to the latest reports from Kelly Blue Book, the average price for a new car remains over $47,000 nationwide, which is more than 15% higher than the average price three years ago.
In that time, Kentucky auto dealers have seen heightened interest in pre-owned vehicles as people attempt to cut costs.
"What we're seeing is, and not surprisingly, year over year, first quarter, a drop in in new car sales and an increase in used car sales because the cost of those goods is just so much more expensive," said Jason Wilson, president of the Kentucky Auto Dealers Association.
Wilson said car dealers are working to adapt to the needs of customers, but the supply of used vehicles has not kept up with demand.
"There's a greater demand for used vehicles, so there's more competition for those vehicles. So it really has created quite a challenge from that standpoint," Wilson said.
In Lexington, car dealerships have been dealing with the impacts of inflation firsthand.
"It's interesting, to say the least, every day," said Shannon Jones, Don Franklin's pre-owned inventory director.
The dealer projects it will sell more used cars this year than last year. Luckily, it's starting to see its inventory begin to grow as well.
"[At] our location, a year and a half ago, we probably had about 200 total new and used cars combined. As of this morning, we have almost 500," Jones said.
That's good news for people looking to buy. As supply begins to catch up, prices are beginning to ease.
While the cost of both used and new cars remains much higher than in 2019, prices are finally stabilizing.
Kelly Blue Book reports the average used car price was 4% cheaper in March 2024 than in March 2023.
New car prices are also down 1% from last year.
"I think it can only get better because the manufacturers are going to start incentivizing more, more used cars are going to start rolling in," Jones said. "Rates will start falling. So hopefully in the long run, it will all balance itself out."
