Since the pandemic began, cars have been selling fast. Whether this is due to consumers driving more than flying, or finding new avenues to have a good time, the statistics are in. For many months the Chevrolet Corvette was the fastest-selling vehicle but now falls just behind the Mercedes-Benz G-Class as the fastest-selling new car in May 2021. 

In analyzing over 1.3 million cars sold in May 2021, there was an average of 47.1 days for a new car to sell, while a used car took 34.8 days to sell. Both new and used cars sold faster in May 2021 than in April, where the average new car took 48.3 days to sell and the average used car took 37.4 days.

There were two new types of cars that went to the top of the list, gas-guzzling cars and alternative fuel vehicles. Alternative fuel vehicles included the brand new Volkswagen ID.4 and Hyundai Tucson Hybrid. Because of sports cars and hybrid/electric vehicles dominating the used market, we saw used car prices go up 6.3% in May as compared to April.

Comparing Sales by Month

January

• Average days to sell: 46.2 
• Average price: $37,157

February

• Average days to sell: 48.9
• Average price: $36,836

March

• Average days to sell: 47.4
• Average price: $36,942

April

• Average days to sell: 48.3
• Average price: $37,558

May

• Average days to sell: 47.1
• Average price: $38,006

One of the best ways to understand the average price of cars or what to expect is to look at the average sales. For example, starting in January we saw a decrease in cost and an increase in days on market. March began to reverse, while April went to similar levels of February until we saw an increase in price and a decrease in days on market in May.

The Microchip Shortage

Although you may not be aware, there is currently a United States microchip shortage. This is due to COVID-19. Semiconductors are an essential component of electronic devices and are found in all cars. In order to make a car run, these microchips harness the conducting properties of semiconductor materials which include silicon. 

Similar to other current global challenges, the shortage began due to foundries in China and other parts of the world not being able to function. People did not go to work, plants were closed and production stopped. This also impacted tighter restrictions at ports and international borders.

This has continued to impact all car sales, whether new or used. For example, the new car inventory decreased by 15.7% and used car inventory decreased by 2.1% in May from April. This has driven up the prices and the demand for cars.

Because of the microchip shortage, when it came to new cars, both higher-priced full-size SUVs and alternative fuel vehicles have become in more demand, which is interesting because they are on opposite ends of the spectrum. 

Fastest-Selling New Cars

The top 20 fastest-selling new cars sold anywhere from 2.8 to 5 times faster than the average new car. They averaged 13.7 days on dealer lots, and SUVs made up most of the top 20 list. Despite this, hybrid and alternative fuel vehicles also account for six models on the list.

• Mercedes-Benz G-Class: Average price sold was $174,887, in only 9.4 days. This saw a 50% increase in sales from April which is truly incredible. It is interesting because it comes after a year of people being able to afford less due to the pandemic. 
• Chevrolet Corvette: Average price sold was $85,359 in 9.5 days. Although this car was at the top of the list as the fastest-selling new vehicle for four months. The Corvette C8 has been in short supply since 2020, and then production stopped through May 24th. This has made it a lot harder to find, and probably accounted for the demand and fast sales.
• Cadillac Escalade: Average price sold was $101,836 in 10.8 days. For four months it was on the list of the fastest-selling cars. This may be due to it being redesigned for 2021 to make the supersized SUV even more luxurious. This led to a 75 percent increase in sales in the first quarter of 2021.
• Hyundai Tucson Hybrid: Average price sold was $34,076 in 11.1 days. The new model arrived at dealerships in May, and when it did it was added to this list. 
• Kia Telluride: Average price sold was $44,066 in 11.6 days. As an SUV, it is a hot seller, and is known for being one that was purchased throughout the pandemic, and continues to do so through the microchip shortage.
• GMC Canyon: Average price sold was $39,260 in 17.1 days. As a pickup truck, the GMC Canyon suffered because the manufacturers changed from three shifts to two, and rebates for the Canyon stopped in May. This is why the inventory was so low.

Fastest-Selling Used Vehicles

Out of all vehicles sold in May 2021, there were specific vehicles that sold the fastest. If the average used car took 39.4 days to sell, the top 20 averaged 25.5 days and sold 1.2 to 1.8 times faster than the average used vehicle. These cars varied, being led by those that are sporty and luxury vehicles. 

The Mazda MX-5 Miata had an average of 19.5 days to sell and sold at $25,009. This is most likely because of its size and that it is a specialty vehicle. The Tesla Model 3 however sold in 20.2 days at an average price of $44,779 although originally marketed at $35,000. For the Honda Odyssey, the average day on market was 25.9, at an average price of $30,651. 

When it came to hybrids it was more of the same. Some of the fastest-selling vehicles were the Toyota Highlander Hybrid at 24.4 days on market and $38,070, along with the Hyundai Palisade at 24.6 days on market at a cost of $43,252. 

Getting into lower-priced cars such as the Honda Insight at $23,041, it spent 22.7 days on market, while the Honda Civic spent 24.8 days and was at a low cost of $20,271. This makes sense because low prices for a good quality car are something many people looked for during the pandemic. 

Sports Cars

The fastest-selling used car was the Mazda MX-5 Miata. This is a sports car, and despite this, prices are continuing to rise. There are seven other sports cars and sports sedans that were in the top 20 selling fastest cars as well which is interesting considering the gas price increase, microchip shortage, and also the pandemic.

• Chevrolet Corvette: 21.8% increase and an average price of $74,773.
• MINI Convertible: 26.2% increase and an average price of $26,625.
• Chevrolet Camaro: 26.5% increase and an average price of $33,525.
• Kia Stinger: 26% increase and average affordable price of $33,892.
• Porsche 718 Cayman: 27% increase and an average price of $67,330.
• Subaru WRX: 27.5% increase, and an average price of $29,424.
• Porsche 911: 27.9% increase and an average price of $146,140.

It is thought that the reason sports cars were a popular vehicle during the pandemic is that they could be used for joy and to have fun while waiting for life to open up. 

Sustained Popularity Vehicles

• The Kia Telluride
• Hyundai Palisade

Although these vehicles debuted in 2020, they continued to sustain their popularity. They are also not necessarily widely available in the used car marketplace, but as the year 2021 went on, there have been more coming up. These cars can be expensive for what they are, and used versions are appealing to consumers looking to save money. 

Alternative Fuel Models

• Tesla Model 3: Tesla tends to make headlines as it is something that had a high-profile debut and is one of the only luxury electric cars in its class. The model 3 is known to be more affordable. Therefore offering this specialty technology at an affordable price makes it an in-demand vehicle.
• Honda Insight: Debuted in 2019, these cars are beginning to enter the marketplace and are in high demand.
• Toyota Highlander Hybrid: As gas prices continue to rise, hybrid demand is as well. The Highlander is a staple vehicle that is attractive in a hybrid model.
• Honda Clarity Plug-In Hybrid: This car that debuted in 2018 is well on the used car marketplace and is seen as an affordable but attractive version of a plug-in hybrid. This had a 28% increase and an average price of $22,430.
• Lexus UX 250h: With a 28.2% increase and an average price of $33,448, Lexus hybrid vehicles have been in high demand whether new or used. This is because they are attractive, luxurious, and still able to help save money on gas as the prices rise.

Fastest-Selling Cars By City

By analyzing data geographically, it is possible to find the fastest-selling new cars in the top 50 most popular metro areas. Out of all, the fastest-selling new vehicle in most cities was the Hyundai Palisade. This was found in five main cities.

• San Francisco-Oakland-San Jose, CA
• Salt Lake City, UT
• Norfolk-Portsmouth-Newport News, VA
• Grand Rapids-Kalamazoo, MI
• Charlotte, NC

Otherwise, the fastest-selling used vehicle is a tie between the Honda Civic and the Mitsubishi Outlander. 

This is most likely because car buyers are having trouble finding the vehicles that are in most demand. Because of this, people are willing to pay more for vehicles in the used marketplace as they normally would. This also has a lot to do with microchip-related inventory constraints. Inventory is down and expected to stay down for the rest of the year. Therefore anyone interested in one of these models will need to move quickly to get the car they want.

Understanding the Data

Analyzing over 1.3 million new and used car sales was necessary when it came to examining and understanding these data sets. For example, taken from model years 2016-2020 for used cars, and from May 2021, the number of days each car was listed for sale, was examined at the model level. Then the average days on market for each were modeled mathematically. Any heavy-duty vehicles, or models no longer in production prior to 2021 were moved from the data set.

Should You Sell Your Car for Cash?

Right now is the best time to sell your used car. As you can see from the data set above, most used cars are selling at higher rates than they did a year ago, even one month ago. At Cashforcars.com we buy your used car and give you cash. This can help to complete the financing on your current vehicle, or help purchase your next vehicle as well. Contact us today or go to cashforcars.com to learn more.