Dealers buy cars wholesale and then sell them later to consumers. In the first half of March, dealers paid lower prices for these cars. The Manheim Used Vehicle Value Index measures how much car dealers spend on used cars at auctions, adjusted for seasonal variations. Cox Automotive, the parent firm of Kelley Blue Book, created the index. It’s usually a good predictor of what will happen to the retail pricing that consumers must pay.
All through 2021, used automobile prices rose to new highs, concluding the year more than 43 percent more than the previous year. However, they have gradually decreased through the first quarter of 2022, which is a good indication for used car buyers.
Almost every category of used cars has seen a decrease in price since February. Only vans witnessed a rise in sales. The decline in wholesale pricing is excellent news for consumers, but used car prices remain unpredictable.
The average wholesale used car prices have dropped significantly in the past year, and experts say this could be good news for shoppers looking to get a great deal on their next vehicle.
Following a year of consistent growth, used car prices fell in January. That month, the average used automobile in the United States sold for $27,633, which was $572 lower from December.
However, analysts are skeptical that the declines would continue due to a usual seasonal uptick induced by tax return season, as well as rising gas prices, which may prompt some buyers to find more fuel-efficient automobiles.
In the initial two weeks of March, the supply of used cars for sale declined marginally. Dealers track their inventory using a metric known as days of inventory, which measures how long it would have taken them to sell out of cars if they halted obtaining more.