The Expert Podcast

• Used Car Market Update (2022)
  • Mixed messages about used car prices in early 2022.
  • For the first few months, wholesale vehicle prices dropped slightly for three consecutive months.
  • However, in June, prices began to rise again after three months of declines.
  • This shift happened amidst rising gas prices, inflation, and higher interest rates on homes.
• What’s Driving the Change?
  • In the early months of 2022, new car inventory was a bit higher, which may have slowed down used car sales.
  • Dealerships may have had a surplus of used vehicles during this time.
  • However, by May and June, new car inventory dropped significantly, with major manufacturers like Mazda, Toyota, Honda, and Subaru having just 5 to 15 days of supply.
  • This shortage could lead dealerships to focus on replenishing used car stock.
• For Dealerships:
  • Are you noticing the same trends? Are used car prices rising in your area?
  • Are retail prices increasing, or are your margins becoming thinner due to inventory challenges?