Revving Up or Slowing Down: The Truth About Used Car Prices
Download MP3In the first few months of 2022, wholesale vehicle prices saw a slight drop for three months straight.
However, prices began to rise again in June after three months of consecutive declines.
This price increase occurred amid:
- Higher gas prices
- Inflation
- Higher interest rates on homes
- Home prices still being high
One possible reason for this trend:
- More new car inventory became available early in the year (Feb-April), slowing down the used car market.
- In May and June, new car inventory decreased significantly again.
Data shows that major manufacturers like Mazda, Toyota, Honda, and Subaru have only 5-15 days of vehicle supply, making it harder for dealerships to run.
Dealerships may now be turning to used cars to fill their inventory gaps.
Discussion point: If you're a dealer, what are you seeing in terms of used car prices? Are retail prices rising, or are your margins getting thinner for used car inventory?
