US used car prices hit record high as availability crisis deepens

Average transaction price for three-year-old used vehicles in the US reached a record $32,461 in Q2, up 4% YoY and 15.5% from Q2 2021. This reflects persistent supply constraints in the new car market, likely driven by ongoing semiconductor shortages and production disruptions. The sustained price inflation in used cars could feed into broader inflation measures, particularly CPI components, and may signal continued pressure on consumer budgets.