Cars Commerce’s latest look at the used-vehicle market is an old story.

As in, older cars have become the dominant force driving supply and vehicle values, according to the company’s monthly Industry Insights Report for August.

The report, based on data from Car Commerce’s platforms, including Cars.com, Dealer Inspire and AccuTrade, shows used-car inventory up 2.3% over August 2023, with the vast majority of that increase coming from vehicles more than 7 years old.

That trend has also driven down retail prices, which have dropped 4.9% year-over-year to an average of $28,871.

The report found the supply of vehicles priced at less than $10,000 — with an average age of 13 years — were up 27.4% from last year, while cars in the $10,000-$19,000 range, averaging 7.3 years old, rose 16.8%.

On the flip side, inventory priced at $30,000 or more plummeted led by $40,000-$49,000 vehicles (average age 2.5 years), which were down 13.1% year-over-year, with supply of those in the $30,000-$39,000 range (average 3.1 years) declining 10% and $50,000-plus vehicles (average 2.3 years) falling 9.6%.

The skew toward older cars is a product of the COVID pandemic, during which new-car production, sales and leasing slowed to a near-standstill, creating a hole in the market that is being filled with older, higher-mileage vehicles.

The Cars Commerce report showed an increase in used-vehicle odometer mileage, translating into a 6.4% decrease in the market’s price per 1,000 odometer miles — meaning vehicles purchased at any particular price point today will have more miles on average than one purchased a year ago.

“The quality of the used-car inventory leans older,” Cars Commerce senior director of industry data and insights Rebecca Lindland said in the report, “and average odometer mileage increased 1.5% year over year as fewer late-model vehicles land on dealer lots.”

As a result of those factors, AccuTrade data showed trade-in values have been steadily sinking for the past two years, averaging $29,976 in August — down 6.2% year-over-year and 13.3% from August 2022.

Not surprisingly given the recent price drops among electric vehicles, the Tesla Model Y was at the top of the list of popular models with falling trade values, losing $7,771 — 21.8% of its previous value — over the past year for a 3-5-year-old. Others on the list that have lost significant trade value include the Ford F-150 (19.14%), the Hyundai Tucson (18.97%) and the Jeep Grand Cherokee (18.56%).

That said, those losses have begun to even out recently. The Model Y’s trade-in value, for example, is actually up $557 from the previous month and $236 over the previous three months, making it one of five models on the Cars Commerce list to have gained value month-over-month while dropping more than 10% year-over-year.

In a news release, Lindland said that’s indicative of increased stability in both the used- and new-car markets for much of 2024.

“August marks another milestone in the automotive industry’s return to normalcy,” she said. “After nearly two years of tight inventory levels and inflated prices, we’re seeing more balance between supply and demand, especially as new-vehicle prices level out.

“We’re heading toward a more predictable automotive market as available supply, and now the Federal Reserve’s recent interest rate cut, offers more consumers a reason to come off the sidelines and purchase.”

The stability is reflected in the August report’s month-over-month numbers. While list prices were down 4.9% year-over-year, they were up a mere 0.2% from the previous month. Demand, as measured by searches on the Cars Commerce platforms, rose the same small percentage.

The company said in the release the used-car market “is experiencing less year-over-year volatility with supply and demand,” noting average prices have remained “relatively flat” since April.

The largest change in the August report was in the time used cars remained live on the platforms before selling, which dropped 3.7 days month-over-month to 53 days. That was still up 11.5% from 2023.

“Dealers are holding inventory longer — 53 days on average — as consumers wait for better pricing,” Cars Commerce said.

The full report is available here.