Dealers paid 14% less for used cars at auction this April than last April. That’s a good sign for used car shoppers – wholesale price changes usually become retail price changes after about six to eight weeks.
Used car dealers have had lower inventory than normal throughout spring, but it hasn’t sent prices climbing. With dealers able to restock at lower prices, that pattern may hold into early summer.
Related: Is Now The Time To Buy, Sell, Or Trade-in a Car?
Used car prices have been on a slow, steady decline for most of 2024. They ticked up slightly in March but remained lower than a year before. A price increase in March is a normal pattern, as tax returns hit Americans’ bank accounts, sending many used car shopping.
Every major segment of the car market saw lower wholesale prices last month. Compact car auction prices saw the biggest wholesale price change, falling 17.6% compared to April of 2023. Used luxury cars saw the least, selling to dealers for 12.9% less than a year ago.
Despite lower prices, Americans don’t expect to go used car shopping in high numbers anytime soon. The Conference Board Consumer Confidence Index declined 5.9% in April, as views of both the present economic situation and the near future declined. Consumer confidence was down 6.5% year over year. Plans to purchase a vehicle in the next six months declined from last month but remained higher than a year ago.
The data come from the Manheim Used Vehicle Value Index. Manheim, like Kelley Blue Book, is part of Cox Automotive.
