The average price of a new car compared to a used one has reached a historic gap.

According to the automotive online resource company Edmunds, the gap between the average price of a new vehicle compared to a used car topped $20,000 for the first time ever last quarter. The average new vehicle sold for $47,542 in the third quarter while used cars went for $27,177 on average.

Last quarter, used car prices fell 6.2% compared to a year ago, but the price for a used vehicle is still up 31.4% from the third quarter in 2019.

It’s a little bit of a different story when it comes to new car prices. Jerry Reynolds, nationally-syndicated host of “The CarPro Show,” disagrees slightly. He says new car prices are coming down and have been now for over a year.

“It’s not that cars are getting cheaper, it’s more that the incentives are getting better,” Reynolds said.

Reynolds cites the covid years and a microchip shortage that led to a shortage of new cars and then rising prices. Right now, we’re seeing the opposite of that.

“We’re seeing incentives now that are averaging in the month of October $3,200 pre vehicle sold,” Reynolds added. “New car prices are coming down and that will drive used car prices down.”

Edmunds also found that dealerships, who have been skittish over the past few years, are seeing a higher turnover for used cars. They’re sitting on the lot an average of 36 days before they are sold. Meanwhile, new cars are taking an average of 57 days to be sold.

“Factories want to sell as many cars to the dealers as they can so dealers have to push them too which means they need those big incentives and dig deeper into their discounts,” said Reynolds.

Historically, people will see the best incentives and lease deals in the final two months of the year.