Wholesale used car prices dropped 1.6 percent from June to July, a slower decrease than the 4.2 percent decline seen the previous month.
Chris Frey, senior manager of economic and industry insights for Cox Automotive, said used cars now have the same index value they did in April 2021. But he also said he did not foresee wholesale used car price reductions “of serious import” through the end of the year.
“While the year-over-year price drop was again double-digit, let’s put some perspective on that. From July 2020, there were 22 straight monthly double-digit increases through April 2022; we’ve had just six double-digit declines since October last year, with only four of them consecutive,” Frey explained.
New car prices, which saw a significant price jump after the pandemic restricted vehicle production, have also stabilized some. But those price stickers remain high.
An analysis by Kelley Blue Book found the average buyer paid $48,808 for a new car in June — a 1.6 percent increase year-over-year, or the smallest since the pandemic began.
Used car sales were up 6 percent from June to July, and more Americans said they planned to purchase a car within the next six months than at any point over the past nine months.
But an auto loan payment may be significantly higher now, when the Federal Reserve has set interest rates at a 22-year high, than when rates were near zero at the beginning of 2022.
The Hill’s Taylor Giorno has more here.
