Wholesale Used Car Prices Fall; Retail Price Cuts Ahead

Automotive sellers are paying virtually 15% much less for used vehicles at public sale than they did a yr in the past.

Used automobile costs are in a sluggish decline early in 2024. The typical used automobile purchaser is paying about 3% lower than they did a yr in the past.

That development is prone to proceed, as sellers are paying much less to accumulate used vehicles within the first place.

That information comes from Kelley Blue Ebook’s dad or mum firm, Cox Automotive, which additionally owns automobile public sale big Manheim — the place automobile sellers go to purchase used vehicles they later promote.

The Manheim Used Car Worth Index tracks the costs sellers pay. As soon as adjusted for regular seasonal fluctuation, it fell about 0.6% in early March. Adjustments in wholesale costs grow to be adjustments in retail costs after about six to eight weeks.

Sellers have a thinner provide of used vehicles post-pandemic. Producers constructed about 8 million fewer vehicles throughout 2021 and 2022 than they in any other case would have. These unbuilt vehicles imply a lull within the used automobile provide that can final a few years.

Costs are about 15% decrease than a yr in the past, however the kind of automobile you’re desirous about may affect the value you pay. Midsize vehicles are down about 16.9%, compact vehicles 16.6%, and pickups 15.6% year-over-year. Luxurious automobiles are down simply 13.5% — a part of a brand new development as People are shopping for extra luxurious and costly used vehicles. Used vehicles priced over $35,000 outsold these underneath $20,000 final month.