It sucks to be out there for a automobile nowadays. Excessive MSRPs and even greater seller markups make lots of new vehicles unreachable for lots of patrons, which has elevated demand for used vehicles. Because of this, pre-owned costs have shot up as properly. For the primary time shortly, although, we now have some excellent news about used automobile costs.
CNBC reports that final month marked six months in a row that wholesale used-automobile costs fell. They’re now 15.6 p.c decrease than they have been in January 2022, their lowest level since August 2021. That information comes from Cox Automotive’s Manheim Used Car Worth Index, which tracks wholesale public sale costs.
One motive for the regular drop in costs is the elevated availability of latest vehicles. You may also credit score greater rates of interest for decreasing demand for automobiles throughout the board, to not point out continued fears over the potential of an imminent recession. However whereas sellers could also be paying much less for used vehicles, that doesn’t essentially imply clients will instantly see these financial savings within the costs they pay.
Cox stories the common record worth of a used automobile was $27,564 in October, which is lower than half a share level decrease than it was again in January. Between October and November, Cox says retail pricing dropped one other one p.c. That’s higher than costs persevering with to go up, however it’s nonetheless not nice information except you’re a used automobile seller.
Presumably, retail pricing will finally fall sufficient to get extra in step with wholesale pricing, however how lengthy that may take continues to be up within the air. If shoppers proceed to be prepared to pay what sellers are charging, it could take some time.